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Bill

SB 585

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

2025-2026 Regular Session Introduced by Gail Davenport and 9 co-sponsors

Georgia requires property and casualty insurers to disclose climate risks, catastrophe modeling, and reinsurance costs in rate filings to increase transparency and regulatory oversight.

Senate Read and Referred
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Bill Summary · SB 585

Legislative bill overview

SB 585 requires property and casualty insurers in Georgia to disclose how climate-related risks, catastrophe modeling, and reinsurance costs factor into their rate-setting decisions. The bill mandates transparency in insurance rate filings submitted to state regulators, compelling insurers to explain the specific data and methodologies they use when pricing premiums.

Why is this important

Insurance rates directly affect consumer costs for homeowners and business coverage. As climate-related disasters become more frequent and severe, insurers are adjusting rates significantly; this bill seeks to ensure regulators and the public can understand the justification behind rate increases. Transparency requirements help regulators assess whether rate hikes are justified or excessive, while also informing consumers about climate risk factors affecting their premiums.

Potential points of contention

  • Industry burden vs. transparency trade-off: Insurers may argue that detailed disclosure requirements increase compliance costs and operational complexity, potentially raising administrative expenses passed to consumers
  • Proprietary concerns: Companies may resist revealing detailed catastrophe models and reinsurance arrangements, claiming these are competitive trade secrets that competitors could exploit
  • Rate-setting pressure: Regulators armed with climate and reinsurance cost data may be more inclined to deny rate increase requests, potentially affecting insurer profitability and market availability in high-risk areas

Compiled from official sources — confirm details with the bill’s official record.

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