Bill > SB585

This bill requires property and casualty insurance companies in Georgia to provide more transparency regarding how climate-related risks, catastrophe modeling, and reinsurance costs affect insurance rates. Specifically, by January 30, 2027, and annually thereafter, insurers must submit detailed data to the state's Department of Insurance, including information on non-renewals, cancellations, claims, and premiums at the ZIP code level, as well as their market share. If insurers use tools called "natural disaster risk models" or "catastrophe models" (which are computer programs or simulations used to estimate potential losses from natural disasters like floods or hurricanes), they must describe these models, explain their impact on rates, justify their rating factors, and detail how they are used in underwriting decisions. The bill also mandates that these models must consider "property specific mitigation actions" (like making a home more resistant to fire or wind) and "community level mitigation activities" (like forest management in a neighborhood) to reduce risk. The Department will create a public database for market share data, and the Commissioner will ensure homeowners insurance and property and casualty insurance rates are reduced for policyholders who implement property or community-level mitigation actions. Insurers must also clearly post information on their websites about available discounts for mitigation efforts and provide annual written notices to policyholders explaining their natural disaster risk score, how it was determined, and how mitigation actions could affect it, with a process for policyholders to appeal inaccurate scores or discounts.

Business and Industry

https://www.legis.ga.gov/legislation/73647