House ad hoc panel launches review of rising insurance rates in South Carolina

The South Carolina House Insurance Rate Review Ad Hoc Committee opened its first meeting to examine rising insurance premiums and said it will summon insurers, affiliates and experts for testimony — including by subpoena if necessary.

Chairman Bill Herb Kirsman opened the session by telling members the panel will "take a deep dive into South Carolina insurance rates," saying the committee will "review our regulatory process" and bring in carriers and experts to "get to the bottom of the issues that plague our policyholders in South Carolina." He said the ad hoc will meet over the interim and "we have subpoena power in this. So if somebody's not looking to come, we will issue subpoenas."

Why it matters: Lawmakers said families and businesses are facing higher premiums, nonrenewals and coverage limits while some insurers report strong profits. The committee intends to examine whether third‑party managing general agents (MGAs), reinsurance costs, credit scoring and fraud are driving premiums and whether the State Department of Insurance has sufficient oversight tools.

Top priorities discussed included: testimony from Director of Insurance Michael Wise on statewide rates; data from major carriers; how MGAs and affiliated service providers affect filed financials and rate calculations; and the role of fraud, reinsurance and credit scoring in premium setting. "We need to understand how MGAs are regulated in South Carolina," Kirsman said. He also asked the committee to identify witnesses and suggested subpoenas for those unwilling to appear.

Several members emphasized the need for data and concrete answers. "I am not going to put up with answers of 'I don't know' in hearings of this nature," Rep. Gatch said, asking that insurers bring detailed numbers on premiums, profits, claims and specific lines such as uninsured/underinsured motorist and liquor liability.

Members raised specific issues they want investigated: the effect of third‑party affiliates and fee arrangements on insurers' reported profits; whether reinsurance pricing is inflating premiums; inconsistent credit‑based insurance scores across companies; property and casualty concerns such as roof age limits and moratoria in certain counties; and coverage complexities for condominiums and homeowners associations.

Rep. Roger Kirby highlighted testimony given to other panels about fraud's impact. "Fraud, just insurance fraud alone, was driving the average annual premiums that a household pays in this state by as much as $1,000 to $1,500 a year per household," Kirby said, and urged the committee to examine coordination among the attorney general's office, State Law Enforcement Division (SLED) and local law enforcement.

Several members with insurance‑industry experience — including Rep. Bill Hixson, who identified himself as an independent agent since 1977, and others who said they handle property and casualty accounts — described on‑the‑ground problems such as insurers raising deductibles without notifying policyholders, dropping long‑time customers over minor roof repairs, and an influx of contractors after reported storms.

Staffing and process questions were raised: members asked for a focused agenda to avoid an unwieldy omnibus approach, and committee staff (named in the meeting as Brian and Erica) were tasked with proposing meeting dates so members could commit in advance. Kirsman said the panel will schedule regular interim meetings and solicit a mix of industry representatives, academic experts and state officials; members suggested inviting the state wind‑pool administrator (referred to in the meeting as "Smitty"), reinsurance experts and a University of South Carolina insurance professor whose prior testimony was described as valuable.

No formal votes or legislative actions were recorded at the meeting. The final recorded procedural step was a motion for adjournment; the transcript records that a motion was heard but does not include a vote tally or formal outcome.

Next steps: committee staff will circulate potential meeting dates, and the panel will begin hearings that the chairman said could include sworn testimony and subpoenas for uncooperative witnesses. The committee intends to use the collected testimony and data to craft legislative proposals during the next session.