National Association of Insurance Commissioners discusses forecasts for Georgia's tropical cyclone risks

The government meeting on August 19, 2025, focused on the critical topic of reinsurance for essential industries in Georgia. Key discussions highlighted the importance of understanding future risks and the role of modeling companies in forecasting potential catastrophes.

During the meeting, representatives discussed insights gained from a recent National Association of Insurance Commissioners meeting, where the chief weather scientist from Gallagher provided valuable perspectives on weather-related risks. The conversation emphasized the need for accurate forecasting to price insurance products effectively. Representative Huberlig raised concerns about the outlook for the next several years, stressing the necessity of reliable data for insurers to make informed decisions.

Participants noted that while severe convective storms are the most frequent peril in Georgia, tropical cyclones pose a greater threat in terms of total damage and costs. This distinction is crucial for understanding the financial implications of natural disasters in the state.

The meeting also included a visual representation of how various lines of business utilize reinsurance in Georgia, particularly highlighting the federal crop insurance program. It was noted that this program significantly reinsures its business, underscoring the importance of reinsurance in managing risk for essential industries.

Overall, the discussions underscored the need for ongoing collaboration between insurers and modeling companies to navigate the complexities of future weather-related risks and ensure the stability of essential industries in Georgia.