Throughout the Southern region, particularly in areas most regularly affected by natural disasters such as hurricanes, private insurance markets have become increasingly unstable, limiting the availability of affordable residential and commercial insurance. The 2005 hurricane season proved that the U.S. currently is ill-prepared to manage the financial aftermath of catastrophic events, and without changes, states are likely to continue to see insurance companies drop coverage in risk-prone areas, or raise premiums beyond the reach of most households and many businesses.
Volatile weather events and other evolving dynamics continue to challenge Southern governors to address immediate issues of insurance availability and affordability, while weighing the effects of policy decisions on long-term market health and stability. SGA is working with member governors and the insurance industry to identify, develop and implement policies that will ensure greater stability in the residential and commercial insurance markets.
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