SC - South Carolina Renews Wind Pool Territory Expansion
A temporary order extending the area where South Carolina’s residual property insurance market provides insurance has been renewed for another two years.
An order issued by South Carolina Insurance Director Ray Farmer says the renewal of the 2007 expansion of the South Carolina Wind and Hail Underwriting Association (SCWHUA) territory is necessary “to address those areas of the seacoast territory where essential property insurance coverage is still not readily available.”
Additionally, the order says the renewal of the expansion will also help market disruptions in areas with the most significant exposure to hurricane and other wind events.
The original expansion order was issued in March 2007 and has been renewed every two years since 2009. It gives SCWHUA, also known as the Wind Pool, the ability to offer wind and hail coverage in the coastal property markets in the state that are ineligible to buy coverage in the standard insurance market. Coverage is offered in five South Carolina coastal counties – Beaufort, Charleston, Colleton, Georgetown and Horry. Data provided by the SCWHUA on May 31, 2020 noted a policy count of 17,582 with more than $36 million in in-force premiums, as of Jan. 31, 2020.
The rate of growth in SCWHUA written premiums has slowed from 41% in 2007 to less than 1% between 2009 and 2011. The market’s written premiums hit a high point in August 2011 and has since decreased by nearly 66% from Aug. 31, 2011 and Oct. 31, 2020.