Georgia faces rising insurance costs as climate risks mount statewide
ATLANTA — Georgia homeowners are facing a growing insurance crisis as property insurers pull back from high-risk markets across the state, leaving residents with fewer coverage options and higher premiums, according to new industry data.
The Georgia Insurance Commissioner’s office reported that three major property insurers have reduced their exposure in coastal counties over the past 18 months, while premiums have increased an average of 23% statewide since 2023. The trends reflect challenges facing other southeastern states as insurers reassess risk models following costly natural disasters.
“We’re seeing a shift in how insurers view risk in Georgia,” said Insurance Commissioner John King during a press conference Wednesday. “Climate-related losses are driving business decisions that directly impact our residents’ ability to secure affordable coverage.”
Coastal Counties Hit Hardest
Glynn, Camden and Chatham counties have experienced the steepest premium increases, with some homeowners reporting rate hikes exceeding 40% upon policy renewal. Three insurers have stopped writing new policies in these areas, forcing residents to seek coverage through the state’s residual market program.
The Georgia Underwriting Association, the state’s insurer of last resort, has seen enrollment jump 35% since January 2024. The organization now covers approximately 45,000 properties statewide, up from 33,000 the previous year.
“We’re picking up policies that private insurers won’t touch,” said GUA Executive Director Sarah Martinez. “That puts additional strain on our resources and ultimately affects rates for all participants.”
Statewide Impact Beyond Coast
The insurance challenges extend beyond Georgia’s hurricane-prone coastline. Counties in North Georgia have seen increased premiums due to wildfire risks, while metro Atlanta faces higher rates linked to severe weather and hail damage.
DeKalb County resident Michael Thompson discovered the new reality when his insurer dropped his coverage after 15 years without claims. His replacement policy costs 60% more for similar coverage.
“I’ve never filed a claim, but they said my area is now considered high-risk,” Thompson said. “It’s forcing people to make tough decisions about how much coverage they can afford.”
Industry analysts point to billion-dollar disaster years as the primary driver behind insurer retreats. Georgia experienced $2.8 billion in insured losses from natural disasters in 2023, according to the Insurance Information Institute.
Legislative Response Under Discussion
State lawmakers are exploring potential solutions during the current legislative session. House Bill 423 would create a catastrophe fund to help insurers manage major loss events, while Senate Bill 187 proposes building code updates to reduce future damage.
“We need comprehensive reform that addresses both the supply and demand sides of this equation,” said Rep. David Clark, chair of the House Insurance Committee. “Doing nothing isn’t an option when families can’t find affordable coverage.”
The Georgia Association of Insurance and Financial Advisors supports legislative action but warns that quick fixes may create unintended consequences. The organization advocates for market-based solutions that encourage competition while maintaining consumer protections.
Consumer advocates urge residents to shop around annually and consider higher deductibles to manage premium costs. The state insurance department offers comparison tools and complaint resolution services for residents facing coverage challenges.
Sources: Georgia Recorder
