Georgia Senate Bill SB585

Georgia 2025-2026 Regular Session

• Introduced: 2/25/26
• Refer: 2/26/26

Caption

Rates, Underwriting, and Related Organizations; certain disclosures in property and casualty insurance rate filings concerning climate related risk, catastrophe modeling, and reinsurance costs; require

Summary

Senate Bill 585 aims to amend the regulation of property and casualty insurance in Georgia by introducing new disclosures that require insurance companies to provide information on climate-related risks and how these affect insurance rates. The bill mandates that property and casualty insurers submit data regarding nonrenewal rates, claim frequency rates, market share, and other essential metrics to ensure transparency in the insurance market. Moreover, it emphasizes the importance of using catastrophe models in underwriting processes, thereby strengthening the association between risk assessment and premium pricing. A significant aspect of SB585 is its directive for insurers to offer mitigation discounts to policyholders who can demonstrate that they have taken specific actions to reduce their properties' risks from natural disasters. This provision is intended to incentivize property-specific mitigation measures and community-level initiatives that improve resilience against catastrophic events. By allowing policyholders to appeal natural disaster risk models or scores, the bill offers a mechanism for accountability in how insurers evaluate risk, promoting fairness and clarity in premium assessments. Furthermore, the bill establishes a framework for public reporting and data collection on the impact of climate risks on insurance rates. It requires the Department of Insurance to maintain a publicly accessible database where policyholders can view market data submitted by insurers, thus enhancing consumer awareness and empowering individuals to make informed choices about their coverage. This overarching goal of transparency and accessibility indicates a notable shift towards greater accountability in the insurance industry. While there is broad support for the bill’s goals of increasing transparency and encouraging property resilience, there are concerns among some stakeholders about the operational challenges insurers may face in implementing these new requirements. Critics express apprehension about the potential administrative burdens on both insurers and the Department of Insurance, which may necessitate additional resources and oversight to ensure compliance without causing delays in processing applications and claims. Additionally, balancing the need for disclosure with proprietary information remains a point of contention, as sensitive data related to risk modeling could be at risk of disclosure despite protections outlined in the bill.