Gulf-Coast-East-Coast Grassroots Insurance Reform Collation


We are  Multi-state:  Florida, Alabama, Mississippi and Louisiana and expanding..

There is a Better Way – The Coastal Re-insurance Band

A Concept Paper*


Big Picture

     A Coastal Reinsurance Entity would collect the hurricane premiums in a home-owners policy in the coastal band. It would pay for wind damages that resulted from named storms.  It would be crafted by a Congressional Act or State Compacts. Non-catastrophic homeowners insurance would remain with the private market.

     Coastal Band Economics

     An estimated $8-20 billion in home-owners hurricane insurance premium is collected in this band each year. The bulk of that goes to reinsurers out of the country. Since 2005 it would have collected $48 to $140 billion in premiums.

     During that same time, it paid about $15 billion in hurricane-related claims in the band.


Predicted losses and actual losses between 2006 and 2010: Between $60 – 68 Billion. Only $15 Billion paid out nationwide**


    Had the revenue stream been managed by a domestic Hurricane Reinsurance Coastal Band Entity, its fund would have $33-$125 billion in reserves today.

     Cutting Premiums in Half

     Collecting premiums at half the current price, the coastal band would collect $4 to $10 billion annually. It would have between $16 and $62 billion in reserve today.

      The average Cat 3 hurricane costs about $3 billion in the Coastal Band. When cut in half, the annual premium would pay for one to three Cat 3 hurricanes a year. The reserve would pay for another five to twenty hurricanes.


     A special Hurricane District or Coastal Band would re-build coastal homeowners after a hurricane at half the current cost paid by homeowners.  It would remove foreign reinsurers from the problem, keeping all the money in the US. It would accumulate premiums for disaster repair, not stockholders.  It needs no taxes to support it. Private insurance companies would flock back to coastal areas because it would relieve them of hurricane wind risk. Because the band affects only coastal America, inland politicians and their constituents can support it.


* This is a Concept Paper. More precise numbers than those cited here will require assistance from regulatory bodies

Click on the hurricane to view our power point.
Coastal Band

Donald Bogen,
Dec 3, 2013, 1:23 PM