The S.C. Department of Insurance has posted its Report on Establishing a Residual Market Mechanism for Flood, produced in conjunction with a feasibility study on the development of a South Carolina-specific catastrophe model that was a requirement of last year's Competitive Insurance Act.  

The Department was asked to study the potential effects of creating a residual market mechanism for flood to address many concerns associated with the National Flood Insurance Program (NFIP), with particular attention to affordability concerns relative to increasing flood premiums.

The report includes a brief introduction, an overview of the NFIP and its recent changes, a review of South Carolina’s flood market and the challenges to the private market’s entrance into flood insurance. The report also includes background information on residual market mechanisms in general.

The report considers a number a questions relative to how a residual market mechanism would operate and be governed and funded and concludes that developing a residual market for flood would be premature at this time.

Download full report

View SCDOI report on SC Hurricane Model