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Senate committee hears why Arkansas homeowners insurance costs rose after 2023 storms and how regulators responded

INSURANCE & COMMERCE - SENATE · March 12, 2024
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

Insurance Commissioner Alan McClain told the Senate Insurance & Commerce Committee that storm losses and rising replacement costs pushed several carriers toward insolvency, prompting regulatory changes including bulletin 17‑23 to allow ACV roof settlements at age 7 and separate wind/hail deductibles; lawmakers pressed for data, consumer protections and possible subpoenas of nonparticipating insurers.

Sen. Hill convened the Senate Insurance & Commerce Committee to review how severe 2023 weather and broader market forces have tightened the Arkansas homeowners insurance market. Insurance Commissioner Alan McClain said storm-related claims and rising replacement costs left some carriers insolvent and forced others to limit new business or leave the state.

"Property insurance premiums have been increasing significantly," McClain said, citing insurer loss ratios and the department's review. He told the committee United Home Insurance (Paragould) was taken into receivership and that Cameron Mutual and First Auto…

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