Lowering Insurance Rates

Many believe the Clarity Act earlier this year will be the first step to lowering high insurance rates here on the Coast.
We take a look at what the Mississippi Affordable Wind Insurance Coalition believes are the next steps toward lowering rates.
High insurance rates have been crippling development along the Coast for the past ten years, hindering South Mississippi from fully recovering from Hurricane Katrina. Leonard Carrubba, with the Mississippi Affordable Wind Insurance Coalition, said, “It’s one of the costs of rebuilding. People are starting to say ‘well how much is it going to cost to insure it’ before they even build it, and that was never even a thought before.”
Many believe the Clarity Act was the first step to getting the cost of insurance lowered. While this law won’t actually reduce rates, it requires insurance companies to explain how and why they charge what they do and clarify it by zip code so we can see how we stack up to our neighbors statewide. “The Clarity Act is going to give us the ammunition to begin to look at the numbers and be able to really see the differences,” said Paulette Mowbray, with the Mississippi Affordable Wind Insurance Coalition.
So, what are the next steps and how do we go about actually lowering insurance rates? That’s what the Mississippi Affordable Wind Insurance Coalition discussed tonight at their regular meeting. They’re looking at possibilities of embellishing the current Clarity Act or even introducing new legislation allowing insurance companies to write policies across state lines, which would result in a homeowner being able to choose from more companies. “Get more people that are chasing the dollar of the consumer, cause competition on the insurance side and hopefully bring the rates down,” said Carrubba.
One thing’s certain, the Mississippi Affordable Wind Insurance Coalition plans on continuing to work with our local lawmakers. The coastal delegation was instrumental in helping the Clarity Act pass and the coalition plans on meeting with them again soon to officially lay out what the next steps are.
As a result from the Clarity Act, the first report from insurance companies on what they’re charging is set to be released in October.

Categories: Local News, News

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