Agent Urges Southern Governors to Unite Industry to Fix Coastal Woes

A national independent agency leader is urging Southern governors to use their “bully pulpits” to bring together the leaders in the insurance industry and help restore competition as they look for ways to ease the region’s coastal insurance crisis.

“Right now, the prospects for broad legislation in Washington are not great, largely because of a fragmented industry. You have the power to bring those leaders together in your state,” Alex Soto, a Miami agent who is president of the Independent Insurance Agents & Brokers of America, told the politicians at the Southern Governors Association annual meeting

Soto told the governors of a need to invigorate competition, enforce stronger building codes and fortify homes along the Gulf Coast.

“The insurance industry is neither monolithic nor monopolistic and the industry, with thousands of different companies, is actively competitive in most parts of the country,” Soto said at the meeting held in Biloxi, Miss., Sunday. “But that’s not the case along the coast, and we need to find ways to restore competition and bring more companies back for our insurance customers.”

Soto represented the Big “I” association on a panel hosted by Mississippi Gov. Haley Barbour.

Soto cited a recent Institute for Building and Home Safety study as evidence of the need for better building codes, enforcement of the codes and attention to land management.

He called for the governors to work with the industry to find ways to encourage consumers to strengthen their existing homes. “There needs to be a private/public partnership to share the risks,” he said.

While noting that Congress is unlikely to come up with any major legislation to address insurance needs on the coast, Soto maintained that a proposal for a natural catastrophe commission could be an important impetus to solving some problems.

Source: Independent Insurance Agents & Brokers of America