South Carolina regulators approve insurance company regulations amid market volatility

The South Carolina House Regulations, Administration Procedures, Artificial Intelligence, and Cybersecurity Committee convened on April 2, 2025, to discuss key regulatory issues within the state's insurance industry. The meeting highlighted the role of the Department of Insurance in overseeing the commercial insurance sector and ensuring the financial stability of companies operating in South Carolina.

During the session, officials confirmed that the state regulates a significant number of insurance companies, with approximately 38 to 40 domesticated insurers currently operating. The discussion emphasized the importance of maintaining liquidity among these companies to prevent insolvency. It was noted that while insolvencies are rare, they can occur due to mismanagement or unforeseen circumstances, underscoring the need for effective regulatory oversight.

The committee also reviewed the financial performance of the property and casualty insurance sector, revealing that the underwriting profit for 2023 was around 5.1%. This figure indicates that while some years may yield profits, the industry does not consistently generate high returns, reflecting the inherent risks involved.

Following the discussions, the committee moved to approve a regulation aimed at enhancing oversight within the insurance sector. The motion received unanimous support, passing with a vote of 10 to 0. This regulatory approval is seen as a step towards strengthening the accountability and financial health of insurance providers in South Carolina.

The meeting concluded with a transition to further discussions on additional regulatory matters, indicating ongoing efforts to address the complexities of insurance regulation in the state.