Alabama: Insurance Availability and Affordability Debated on Alabama Coast

Panelists and attendees discussed availability and affordability of property insurance on Alabama's coast during a symposium Jan. 9 hosted by the Eastern Shore Chamber of Commerce. Liz Reynolds, NAMIC's Southeast state affairs manager, attended the meeting and prepared a comprehensive report of the three-hour meeting.

NBC-15 anchor Greg Peterson moderated the conference, introducing the various speakers, taking questions from the audience, and asking questions and inserting comments of his own. More than 300 people from southwest Alabama as well as some from as far away as Pensacola, Fla., filled a ballroom at the Marriott Grand Hotel conference center in Point Clear.

U.S. Congressman Jo Bonner, who was first to speak, commented that such a large turnout, several years past Katrina, “speaks volumes … and illustrates challenges” that still exist regarding coastal insurance.

Other panelists included Alabama Insurance Commissioner Walter Bell; Alabama state Sen. Ben Brooks, R-Mobile; Tim Russell, president, Baldwin Mutual Insurance; Mike Cross, executive vice president, Willis Re; Bob Groves, Alabama Insurance Underwriting Association secretary/manager; and Randy Delchamps of Randy Delchamps Real Estate and Development Company. Questions from the audience ranged from very personal concerns to long-term worries about the beach pool and other solutions being offered by various parties.

Much of the discussion focused on whether there is a “crisis” on the Alabama coast, and if the issue is availability, affordability, or both. Bonner talked about federal solutions, and mentioned in particular his co-sponsorship of legislation to expand the National Flood Program to include wind.

In his keynote address, Bell educated the audience about the history of insurance regulation in the United States and emphasized the importance of allowing the free market, except in very extraordinary circumstances, to create solutions when problems occur. He said, “I don’t disagree publicly with congressmen, but I’m the technician…. The feds need to stay out of the insurance market as much as possible, in my opinion.”

Bell segued from potential federal solutions to the situation in Alabama, explaining he believes better days are ahead, as long as there are no storms in the near future. And even along the coast, he is convinced that very few have gone without coverage, based on beach pool data combined with nonrenewal figures. “Prices are just higher than what we’ve been used to,” he said. The commissioner also emphasized that even though Alabama does not face the same risk as other states, prices are unlikely to return to pre-Hurricane Ivan levels for a variety of reasons.

“Commissioner Bell did an excellent job of helping the symposium attendees understand all aspects of the insurance business,” noted NAMIC's Reynolds. “He demonstrated that insurers and consumers can count on him for straight talk and a straightforward approach to the issues in Alabama.”

Direct questions to NAMIC State Affairs Manager Liz Reynolds.

Posted: Tuesday, January 15, 2008 12:00:00 AM. Modified: Tuesday, January 15, 2008 10:29:43 AM.

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