The insurance crisis in Rhode Island is reaching alarming levels, according to testimony from a veteran insurance agent during a recent U.S. Senate Committee on the Budget meeting. With over 40 years of experience, the agent described the current insurance marketplace as the worst he has ever seen, attributing the decline to the increasing frequency and severity of climate-driven weather events.

The agent highlighted a staggering 562% rise in policy renewals in high-risk coastal areas, alongside the exit of two major insurers from the Rhode Island market in the past two years. One insurer, which had previously specialized in homeowners' policies for coastal communities, is now in receivership, leaving thousands of policies canceled midterm. Another insurer plans to non-renew all home and auto policies in Rhode Island and other states by 2025.

The agent emphasized the dire consequences of these non-renewals, noting that standard insurers are reluctant to accept new customers in coastal regions. This has led to a 30% increase in the Rhode Island Joint Reinsurance Association, a residual market risk pool, forcing consumers to pay significantly higher premiums—between 35% and 50% more—for basic homeowners policies that lack optional coverages.

The testimony also shed light on the broader implications of the crisis, with many homeowners facing exorbitant hurricane damage deductibles that are unaffordable for most. The agent pointed out that the situation is not unique to Rhode Island, as neighboring Massachusetts is experiencing similar spikes in policy non-renewals.

As extreme weather events become more common, the agent warned that the insurance industry is struggling to adapt, with many insurers unwilling to accept high premiums, signaling a troubling trend. The meeting underscored the urgent need for policy changes to address the growing insurance crisis driven by climate change, as consumers face mounting challenges in securing affordable coverage.