Coastal Commercial Insurance Market Analysis
The commercial insurance landscape in Coastal counties is relatively stable, despite factors like construction type and environmental considerations impacting costs. Andy Case, Director of Property & Casualty Rating for the Mississippi Department of Insurance, notes a strong presence of willing carriers, promoting a robust market for commercial insurance.
Currently, commercial insurance costs appear lower in Coastal areas compared to other parts of Mississippi. “Wind is wind no matter where it is,” Case commented, highlighting potential regional disparities above Hattiesburg that could shift with the next major storm.
Industry veteran Tom Sawyer notes that the absence of recent hurricanes has created a competitive market with numerous insurers. Some businesses report windstorm coverage reductions between 25% and 50% compared to the previous year, especially for well-constructed properties. Sawyer emphasizes modern building techniques as crucial for cost efficiency, suggesting robust construction materials can lead to significant insurance savings.
Bill Lavers of the Harrison County Development Commission mentions that while insurance is a standard business expense, it does not heavily influence development decisions. Factors like location and construction type often weigh more in these processes.
Conversely, Blaine LaFontaine from the Hancock County Port and Harbor Commission reports premium increases for many industrial and commercial properties. The National Flood Insurance Program’s Risk Rating 2.0 has led to rising premiums for some properties. Despite these challenges, LaFontaine is working on cost mitigation for tenants through competitive lease rates.
Angelyn S. Zeringue, President of SouthGroup Insurance-Gulf Coast, recognizes the complexity of property insurance on the Coast. She notes favorable rates for newer constructions, while older buildings face rising premiums. The entry of more insurers into Mississippi has broadened coverage options, energizing market competitiveness. Zeringue advises business property owners to explore available options actively to benefit from reduced rates, especially for properties with updated infrastructure.
Zeringue also highlights stricter underwriting for low-cost providers and emphasizes the need for inspections to address potential liabilities. She advocates for initiatives like the Strengthen Mississippi Homes Program to enhance the resilience of residential and business properties, aligning with efforts in neighboring states.