NAIC Launches Homeowners Insurance Data Collection Initiative
The National Association of Insurance Commissioners (NAIC) is launching a comprehensive data collection initiative for homeowners insurance policies across the United States. Announced during the NAIC’s spring national meeting, this data call aims to gather ZIP code-level information to better understand factors affecting pricing, underwriting, and coverage. The initiative emphasizes accessibility and affordability of homeowners insurance across various regions.
Insurance carriers with at least $50,000 in annual premiums must submit their data by June 15. This includes policy data from 2018 through 2025, which will form the basis of a public report anticipated for release in early 2027. The NAIC has specified the need for detailed metrics, such as policy types, claims data by peril, premium costs, deductible levels, and mitigation discounts.
Regulators will use the collected data to evaluate how policy structures impact costs and accessibility. This includes monitoring insurer financial health and enhancing consumer awareness about coverage options. Florida Insurance Commissioner Mike Yaworsky, leading the Homeowners Market Data Call Task Force, emphasized that this data will help regulators better prepare for severe weather events.
This initiative follows a 2024 collaboration between the NAIC and the US Treasury’s Federal Insurance Office to standardize homeowners insurance data sharing. Climate-related challenges have been impacting costs and coverage accessibility, as highlighted in a Treasury Department report. Between 2018 and 2023, states like California and Florida have seen increases in last-resort insurer policies due to private carriers scaling back.
Major insurers such as State Farm and Allstate have made significant market decisions, including policy suspensions in California due to wildfire risks, impacting market stability. In Florida, legislative changes have encouraged capital inflow; however, a significant number of homeowners remain uninsured, with the state-run Citizens Property Insurance Corporation handling approximately 1.3 million policies.
Industry observers like Weiss Ratings noted shifts in policyholder retention, including high drop rates in Florida and California and increased nonrenewals in Louisiana. The data call is seen as significant for fostering transparency across the industry. Erica Weyhenmeyer of the National Association of Mutual Insurance Companies highlighted its role in supporting discussions on affordability and risk management.
The NAIC also updated the development of the Artificial Intelligence Systems Evaluation Tool, currently in pilot testing with volunteer insurers. This tool, expected for full adoption by the fall national meeting of 2026, will aid in assessing AI applications in underwriting, claims, and marketing. It builds on the 2023 AI Model Bulletin that established foundational standards for AI in the insurance sector.