The wind pool, which would be known as the Georgia Coastal Insurance Corp., would manage fair-share participation by admitted property/casualty insurers doing business in the state. It would be created as a separate organization within the established Georgia Underwriting Association.
The plan would provide residential and commercial coverage for individuals and entities “that cannot obtain property insurance coverage on terms comparable with those found in the remainder of the state solely due to geographical location and attendant potential exposure to risks of wind or water loss or damage,” according to the draft proposal.
It would provide “incentives and sanctions to encourage voluntary writing by admitted insurers” in the coastal counties. The proposal specifically mentions predictions of more frequent storm activity in the Atlantic Basin over the next 10-20 years.
Establishing the new entity is within the commissioner’s regulatory powers and would not require legislative action, said Glenn Allen, a spokesman for the Georgia Office of Insurance and Safety Fire Commissioner.
Allen said the proposal is in its early draft stages, and there is as yet no time line for moving forward within the regulatory process.
In February, Oxendine said the state was looking into creating a tax-exempt, quasi-governmental organization to partner with private insurers in order to be able to continue writing insurance and reinsurance in coastal areas.
In 2006, the top five writers of homeowners multiperil in Georgia, according to A.M. Best state/line product information based on direct premiums written, were: State Farm Group, with a 30.9% share; Allstate Insurance Group, with 14.5%; Georgia Farm Bureau Group, with 8.6%; Travelers Insurance Cos., with 7.4%; and USAA Group, with 5.6%.