How Georgia Can Tackle Rising Insurance Premiums and Loss Ratios

In recent years, Georgia’s homeowners’ insurance market has undergone a significant shift. Once considered both affordable and accessible, the landscape changed following the devastating impact of Hurricanes Idalia, Helene, and Milton in 2023 and 2024. These storms inflicted billions in losses on properties and farms, leading to a sharp 30.9% rise in homeowners’ premiums from 2019 to 2024. In 2024 alone, premiums jumped 8.1%, with insurers posting a direct loss ratio of 112%, far exceeding profitable thresholds when expenses are included.

Georgia’s average homeowners’ premium, currently $1,954 for a $300,000 home, remains below the national average of $2,341. However, the surge in claims has exposed the vulnerabilities of smaller, regional insurers such as Georgia Farm Bureau and Southern Trust, which posted combined ratios exceeding 150% in 2024. National carriers with diversified portfolios fared better, highlighting the role of reinsurance and geographic risk distribution in financial resilience.

In response, the Georgia legislature is evaluating policy reforms, including HR 659, to examine insurer practices and explore best practices from other states. Recommended measures include improving access to unaffiliated reinsurance, expanding the underutilized Georgia FORTIFIED program, and broadening the state guaranty fund to include property insurance. Strengthening the state’s audit and fraud detection systems is also critical, especially in light of past high-profile fraud cases involving state officials.

Looking forward, a balanced approach is essential—one that maintains competition, ensures solvency, and provides affordable coverage for residents. Lessons from Alabama and Florida suggest that stronger mitigation programs, clear regulatory oversight, and diversified risk management can help Georgia navigate its increasingly storm-prone environment without destabilizing the insurance market.