Clarity Act Aims to Regulate Skyrocketing Insurance Rates

Many people believe the high rates of property insurance are stunting economic development along the Coast. The Clarity Act was created to address this matter, but did not pass through the legislature last year. As you drive along Highway 90, you see more empty lots of land than developed properties. Many blame the area’s expensive insurance rates, which have gone up 300% since Hurricane Katrina.

Gulf Coast legislators are working vigorously this session to get the Clarity Act passed, which would require property insurers to explain how and why they charge what they do and clarify it by zip code. Representative Scott DeLano, (R) District 117, says, "It’s really to force the Department of Insurance to do their job, to go out and try to find a way to lower the insurance rates for people on the Gulf Coast for homeowners insurance, as well as our commercial insurance."

Representatives say records show insurance companies paid out more to north Mississippians after tornados than to Coast residents after hurricanes. This is why our local reps feel it’s important to have a piece of legislation to help level the playing field of insurance rates throughout the state. However, in an interview with News 25 earlier this week, Governor Bryant said he does not believe it’s our lawmakers’ place to step in. Bryant says, “Lowering cost of insurance is a free market problem or issue and it will take time for the free market to try and right itself."

Last legislative session, the bill passed through the House, but died in the State Senate after the Mississippi Insurance Commissioner raised some concerns about the bill and the two parties were not able to come to a compromise. Although the Clarity Act was struck down last year, Representative DeLano is hopeful this year will be different. DeLano closes, “Yeah, I think that we’ve kind of worked things through. The Department of Insurance has worked with us to try to find a solution to these answers. We just want to make sure that we press and get what’s best for the people in south Mississippi."

Both Alabama and Louisiana have passed Clarity Acts and are happy with them, which is why south Mississippi lawmakers want us to follow suit.