From 1891 to 2009 there have been 54 major hurricane strikes on the east coast of the U.S.

Of that total only nine major hurricanes hit the protected Georgia and South Carolina coast.

Of these nine, six major hurricanes hit South Carolina. During that 120 year period Beaufort County had only

eight total hurricane strikes. And only one of them was a major Class 3 hurricane….Hurricane Gracie in 1960.

Beaufort County’s most damaging storm was The Great Sea Island Hurricane of 1893. However, it had been downgraded to a category 2 or 1 by the time it hit the county.

*Source- National Hurricane Center 2010

Here are the facts

The NHC gives its risk ratings in the form of a projected number of years . And this rating is based on the number of hurricane strikes that have hit Beaufort County, and South Carolina, over the last 100 years.

*Source- National Hurricane Center 2010

What is our hurricane risk rating?

South Carolina Property/CasualtyDirect Premiums Written ($000)

Source: Russ Dubisky SC Insurance New Service

2011 6,728,444

2010 6,515,790

2009 6,522,233

2008 6,706,111

2007 6,841,951

2011 4,375,525

2010 3,690,011

2009 3,459,973

2008 3,496,333

2007 3,325,582

Source: Russ Dubisky SC Insurance New Service

Direct Losses Incurred ($000)

Recommendation: Ask the legislature to rescind the Property and Casualty Personal Line Modernization Act of 2004 for the next session.

Request that the Commissioner set specific goals as to how he or she will reduce the state’s homeowner premiums to be more in line with the medium of all coastal states.

The Senate’s Banking and Insurance Committee should annually review a report from D.O.I. that compares our state performance on three basic areas: 1) How S.C. homeowner rates compare to other states.2) How the insurance industry ranks us in giving them a return on net worth (this is a report which the insurance industry reports). 3) A report on the “customer satisfaction” of the consumers who contact both the D.O.I. and their insurance company.

The Senate Banking and Insurance Committee met for the third time this week to consider the appointment of Ray Farmer as Director of the Department of Insurance.

Farmer addressed the committee extensively before appointment.

Much of the discussion centered on coastal property insurance rates and hurricane risk.

Mr. Farmer indicated that the coastal property insurance and long term care insurance were the top two issues for him as Director.

His confirmation now moves to the Senate floor for consideration.

Chairman Hayes has appointed a Coastal Insurance Subcommittee.

To address the questions raised during the hearing.

Chaired by Senator Luke Rankin. Senator Tom Davis will serve on this subcommittee.

As an aside, Senator Rankin introduced S.350 to provide a screening committee for future DOI appointments prior to coming before the Senate for consent.

The bill was referred to the Senate Banking and Insurance Committee

If we could improve FALL TOURISMin four years…

Fall as % of Summer

Increase inDirect TourismExpenditures

(000)

Increase in Total Economic

Impact(ooo)

Charleston 65 - 85 % $440, 558. $642, 682.

Beaufort County

35 - 75 % $386, 752. $680, 684.

$827, 310.

$1, 323.

Subject: Storm of Money How insurance companies rigs the system

Below is a link to today’s article in the Charleston News & Courier by Tony Bartelme on the insurance industry.

http://www.postandcourier.com/article/20121202/PC16/121209871/1165/storm-of-money-insider-tells-how-some-insurance-companies-rig-the-system