On Wednesday, Governor Robert Bentley signed an executive order creating the Alabama Center for Insurance Information and Research to look at the availability and rising cost of homeowner insurance.
The Center will be located at the University of Alabama’s Culverhouse College of Commerce and will provide information to property owners across the state.
“This will be an independent, non-profit research center that will examine the challenges facing Alabama homeowners and produce thorough, unbiased research on the availability and affordability of homeowners insurance across Alabama,” the Governor said. “This will be a source of information that helps homeowners make informed decisions. This will help encourage competition, which will also benefit consumers. And I believe that, over time, the work of this center can make insurance premiums more affordable while connecting more people with the comprehensive types of coverage they need.”
Some of the long-term goals of the newly enacted research center include:
- Becoming a statewide and credible source of information on risk management
- Helping Alabama insurance buyers in understanding risk mitigation and consequential savings when shopping for insurance
- Providing valuable new insights to policy makers, consumers, and insurance and risk management professionals alike
- Identifying any barriers that may discourage new insurers from doing business in Alabama
This isn’t the first time Gov. Bentley has focused on affordability of homeowner insurance. In April 2011, the Governor established the Coastal Insurance Commission to check on the insurance needs of people living on the Alabama Gulf Coast, where homes are most susceptible to tropical storms and hurricanes. The commission’s goal was expanded after the April 27, 2011 tornadoes caused devastation through portions of Alabama. The Affordable Homeowners Insurance Commission was also created to look at a statewide approach to insurance needs.
A study done by these commissions lead to the establishment of the new Alabama Center for Insurance Information and Research.
“The commission conducted a rigorous investigation to find solutions to the problems faced by a significant number of people. Research and education continually surfaced as necessary components to any solution,” said Alabama Department of Insurance Commissioner Jim Ridling, who served on the Affordable Homeowners Insurance Commission. “Consumer education and information from this center can help people make informed decisions and get more for their insurance dollar. By establishing this research center, the Governor is fulfilling a promise to the people of our state.”
The board of directors of the Insurance Research Center will include members from the Governor’s Office, Departments of Insurance and Revenue, Alabama Bankers Association, Home Builders Association of Alabama and other organizations.
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