Insurance Commissioner Chaney says legislative action a factor in windpool rate increase

• The longtime Commissioner also addressed healthcare access and said he’s considering another bid for re-election in 2027 after lawmakers balked at making the position appointed.

Next month, two decades will have passed since Hurricane Katrina made landfall along the Gulf Coast, and the subsequent rising cost of insurance has been on the minds of Mississippians ever since. 

That was one of several topics Mississippi Insurance Commissioner Mike Chaney (R) touched on during his speech at this year’s Neshoba County Fair.

Attendees of the annual event received some bad news on Wednesday as Chaney spoke under the Founders Square Pavilion – windpool rates are expected to increase at the end of the year. 

“Windpool rates on the coast are lower today than they were in 2008, but this will end in December when rates will increase,” Chaney said during his speech. “Since 2005, the state has poured over $400 million into keeping rates low in our coastal counties for economic recovery — that is not a sustainable model.”

Katrina is still ranked as one of the costliest storms on record, causing over $100 billion in total damage across several states.

The record-breaking storm destroyed more than 60,000 homes in Mississippi alone, Chaney explained, leading to major changes in coastal and inland insurance policies. His task as Insurance Commissioner has been ensuring the coast has access to policies, which are essential for a strong economy. 

“I am proud of the job my staff and I have done in this office,” Chaney said. “Today, we are better equipped to handle wind events for two reasons. One, we’re building most of the homes on the coast out of the floodplain. Two, we’ve built stronger homes with building codes.”

Even though he described the current market as stable, he said it is “under pressure.”

“Like the rest of the country, we face inflation, supply chain disruptions and rising costs of rebuilding after disasters,” Chaney stated. “I understand the burden rate hikes place on homeowners and work to soften the impact.”

One of the ways homeowners can lower their insurance premiums is to strengthen their home through mitigation, especially their roofs. 

Chaney cited a now cancelled program, the Strengthen MS Homes program, which provided up to $10,000 to homeowners in the three coastal counties to fortify their roofs. Funded by fees paid by insurance companies, the program had to be closed on July 1 due to legislative action. Before it ended, it was able to help mitigate hundreds of homes. Chaney said he had to close the program due to the spending authority of that money being stripped by the Legislature “for political reasons.” 

He said that action is one factor leading to a 16 percent increase in windpool rates come January 1, 2026.

“That’s not just disappointing, it’s dangerous, not logical and bad public policy that will cost homeowners,” Chaney explained. “Mississippi is now the only coastal state without a program managed by its department of insurance and overseen by the state auditor.”

When asked for details, Chaney added that the authorization to use those funds was rescinded during this year’s special session, without notice. 

“I’m really upset,” Chaney added. “It’s a program we worked on since 2008. Every state now has a program; we don’t have one. And our rates are going to go up because of it.”

A similar program in Alabama led to the mitigation of more than 55,000 homes, putting their rates for homes along the coast between 40 to 50 percent less than those in Mississippi.

Since those funds came from insurance dollars, that money was moved by Chaney’s office to a special trust fund to ensure it does not end up in the state’s general fund, the Commissioner said.

“I’ve been around a long time, so I knew enough to put it where they wouldn’t get their hands on it,” Chaney elaborated.

In a bit of good news, Chaney said an extra $18 million in Rural Fire Truck Program grant funds are expected to help reduce rates through larger rebate funds to counties and cities. He thanked the House and Senate for that provision. 

While not discussed in front of the attendees during his speech, Chaney told the press that he is concerned how cuts to the Medicaid program through the passage of the “One Big, Beautiful Bill” will affect Mississippians’ access to healthcare. He predicts between 200,000 to 250,000 people will lose access to healthcare due to those cuts. 

“We’ve got some real issues in this state with what is going on with Medicaid,” Chaney said. “You know, it’s not just the Delta, it’s going to affect Meridian, it’s going to affect Greenwood. A lot of people are going to be affected.”

Chaney also told Magnolia Tribune later in the morning that he was once again considering a run for re-election in 2027 after lawmakers balked at his proposal to make the position appointed instead of elected. He is the longest serving insurance commissioner in the U.S.