Committee hears proposal to create $20 million insurance incentive fund to attract property coverage in North Dakota

Deputy Insurance Commissioner John Arnold told the Legislative Appropriations Committee that the state should create a North Dakota Insurance Incentive Program to encourage insurers to write property coverage in the state.

Arnold said the program would offer grants ranging from $2,000,000 to $10,000,000 that the insurer must match dollar-for-dollar; the state’s share would be paid out over five years (20% annually) contingent on benchmarks. “Insurers could apply for grants ranging from a minimum of $2,000,000 to a maximum of $10,000,000,” Arnold said. He added that grants would be tied to metrics insurers must meet before each annual payment is released.

Why it matters: Committee members pressed for detail because rising premiums, severe weather and limited insurer participation are driving affordability and availability concerns in North Dakota. Proponents framed the plan as a preventive measure to keep the market competitive and avoid the need for a costly state-run insurer of last resort such as Louisiana’s FAIR program.

Details of the proposal

- Match and payout. Grants would require a 1-to-1 private match and be paid 20% per year over five years. The minimum grant is…