The Alabama Legislature has expressed its concern regarding the instability of commercial property insurance in coastal Alabama, which is critical for the region's economic vitality. The coastal area attracts over 11 million visitors annually, supports nearly 100,000 jobs, and generates approximately $10 billion in tourism spending. However, the Alabama Coastal Commercial Insurance Joint Interim Study Commission has highlighted the growing challenges in the availability and affordability of commercial property insurance, which threatens the resilience of local businesses and the overall economic security of the state. The resolution acknowledges the need for state-level interventions, such as reinsurance programs, tax credits for risk mitigation, and a review of insurance industry practices to enhance transparency and accountability.

Furthermore, the resolution calls for the exploration of various strategies to stabilize the coastal commercial insurance market, including broadening the coverage of the Alabama Insurance Underwriting Association's Wind Pool and strengthening construction standards in high-risk areas. The Legislature emphasizes the importance of ongoing discussions and stakeholder engagement to develop prudent policies that ensure long-term economic and insurance stability in coastal Alabama. The resolution also mandates that the findings of the study commission be formally communicated to the Governor and relevant stakeholders to maintain focus on this critical issue.