Senate · Introduced · 2025-2026 Regular Session

SB585: SB585 Rates, Underwriting, and Related Organizations; certain disclosures in property and casualty insurance rate filings concerning climate related risk, catastrophe modeling, and reinsurance costs; require

Last action February 26, 2026 · Senate Read and Referred

A Georgia Senate bill would require property and casualty insurers to disclose how they use climate risk models and catastrophe data in rate filings, and would require rate discounts for homeowners who take steps to reduce disaster risk.

In plain language

Georgia law currently does not require insurance companies to explain how they use climate or disaster risk models when setting property insurance rates. This bill would add new sections to Georgia's insurance rate regulation law (O.C.G.A. Chapter 9 of Title 33) requiring insurers to submit detailed data to the Department of Insurance every year starting January 30, 2027, including ZIP code level information on cancellations, claims, premiums, and market share. Insurers that use catastrophe or natural disaster risk models would have to describe those models, justify their impact on rates, and show that mitigation actions like building hardening or community wildfire fuel reduction are factored into pricing. The Department would build a public database of market share data. The Commissioner of Insurance would be required to set up actuarially appropriate rate reductions for policyholders who show they have taken mitigation steps, and insurers would have to post discount information online and give written notice and appeal rights on natural disaster risk scores. The law would take effect January 1, 2027 and apply to rate filings submitted on or after that date.

What the bill does

Requires every property and casualty insurer doing business in Georgia to submit annual ZIP code level data on cancellations, claims, premiums, and market share to the Department of Insurance starting January 30, 2027.
Requires insurers that use catastrophe or natural disaster risk models to describe the models, justify rating factors, and explain how mitigation actions affect pricing.
Directs the Department of Insurance to build and maintain a public database showing market share data submitted by insurers.
Requires the Commissioner of Insurance to set up an actuarially appropriate rate reduction for homeowners who show they have completed property or community level mitigation actions.
Requires insurers to post discount and incentive information online and give policyholders written notice and appeal rights regarding natural disaster risk scores.
Treats any risk model or scoring method submitted to the Department as a trade secret exempt from public disclosure.

Who it affects

Property and casualty insurance companies operating in Georgia, the Department of Insurance and the Commissioner, and homeowners or applicants for residential property insurance who may seek mitigation discounts or challenge their assigned risk scores.

Why it matters

Homeowners could gain new tools to see why their premiums are set a certain way, challenge inaccurate risk scores, and potentially receive discounts for hardening their homes or participating in community mitigation efforts, while insurers face new reporting, disclosure, and rate justification obligations.

Key provisions

New Code Section 33-9-45 requires annual insurer submissions of ZIP code level nonrenewal, cancellation, claims, and premium data starting January 30, 2027.
Section 33-9-45(c)(3) requires disclosure of any catastrophe or natural disaster risk model used, including its rating impact and actuarial justification, though the model itself is protected as a trade secret.
Section 33-9-45(d) requires the Department to create a public database of market share data for policyholders to access.
New Code Section 33-9-46(b) requires the Commissioner to establish actuarially appropriate rate reductions for demonstrated mitigation actions and set a process for policyholders to prove them.
Section 33-9-46(c) requires insurers to post mitigation discount information and amounts on their public websites.
Section 33-9-46(d) requires annual written notice to policyholders explaining natural disaster risk scores in plain language, including score ranges and the property features that influenced the score.
Section 33-9-46(e) creates an appeal process allowing policyholders to challenge inaccurate risk scores or classifications, with insurers required to respond within 30 calendar days.
Section 2 sets the effective date as January 1, 2027, applying to rate filings submitted on or after that date.

Status timeline

2026-02-26Senate Read and Referred (Senate)
2026-02-25Senate Hopper (Senate)

Topics

property insurance rates
climate risk disclosure
homeowners insurance discounts
catastrophe modeling
insurance regulation