Mississippi Governor Phil Bryant signs clarity bill into law
Mississippi’s Insurance Clarity has been signed into law by Governor Phil Bryant. The bill is meant to ensure more transparency in the insurance industry, forcing companies to provide more information concerning the premiums they collect and the losses they face in doing business. Transparency has become an important issue for the insurance industry, where many consumers have voiced their concerns that insurers do not offer enough information and attempt to hide this information in order to preserve themselves.
Insurance industry will have to provide information concerning premiums collected and losses experienced in the state
The bill will require the insurance industry to provide reports about the premiums they collect and the losses they experience. This information will be categorized by zip code, providing an easy way to find this data for those interested in doing so. Those supporting the legislation believe it to be a small, yet important step toward more transparency in the insurance industry. Supporters suggest that there must be more information regarding the rapidly increase in insurance rates in the state, especially in coastal regions.
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Transparency may help consumers understand why their insurance rates are growing
There are numerous reasons why insurers do not provide this information immediately. One of the common reasons is that this information is privileged and may involve trade secrets that the insurance industry does not want made public. Generally, information concerning premiums and losses is only available to a select few, which has given way to complaints from consumers that are being forced to pay higher rates without any actual explanation.
Organization suggests that coastal residents are paying too much for their insurance coverage
According to the Mississippi Affordable Wind Insurance Coalition, which aggressively supported the clarity bill, those living in coastal regions are paying disproportionately higher rates for insurance coverage than anyone else. The organization suggests that insurance premiums are nearly as expensive as a homeowner’s mortgage, but homeowners are not being given a reason why their premiums are increasing. The legislation may help address this information, if homeowners are willing to seek out the data that is being made available to them.