The Alabama Legislature has passed an act to establish the Alabama Coastal Commercial Insurance Joint Interim Study Commission. This commission is tasked with investigating the rising costs of wind insurance for coastal commercial and multifamily properties, which have seen significant increases over the past two years. The concern is that these properties are becoming underinsured or not insured at all, which could pose a risk to Alabama's economy in the event of a significant storm. The commission will evaluate the state's current risk exposure and explore potential programs to provide relief from the increasing insurance costs, ensuring the sustainability of any proposed programs.

The commission will consist of various members, including representatives from the Alabama Department of Insurance, the State Finance Director, members of the Senate and House representing Baldwin County or Mobile County, chairs of several legislative committees, a representative from the University of Alabama's Center for Risk and Insurance Research, and two representatives from the property and casualty insurance industry. The commission will compare Alabama's wind coverage with that of surrounding states, analyze the fiscal impact of inadequate wind coverage, review alternatives to wind coverage, and examine the state's ability to sustain proposed assistance programs. The commission is required to report its findings and any proposed legislation to the Legislature by January 1, 2025, after which it will be dissolved.