Suggestions for Enhancing Private Insurer Participation and Competition in Coastal Alabama Property Insurance Markets

This PowerPoint report, presented by Robert Hartwig, president of the Insurance Information Institute, developed for the Coastal Recovery Commission of Alabama, analyzes Alabama’s coastal property insurance market exposure problems and offers recommendations to the improve the situation. The report shows that while Alabama’s exposure is sizable it is better managed than in most states. Contributing to the problem are the state’s coastal population growth and property development, but, on a positive note, only two counties in the state, Baldwin and Mobile, have direct coastal exposure. Alabama helps to manage the problem by practicing risk sharing through the use of deductibles and by providing incentives to build to stronger structures. Recommendations offered in the report include raising public awareness of risk through mandatory risk disclosure in all residential real estate transactions, requiring signed waivers if flood coverage is declined, continuing to strengthen and enforce building codes and others.