North Dakota Insurance Commissioner Jon Godfread
BISMARCK, N.D. (KFGO/Prairie Public) – The Legislature’s Budget Section has given Insurance Commissioner Jon Godfread the go-ahead to spend $1.5 million on a study on how to improve North Dakota’s insurance market.
The money would come from fees the Department collects from insurance companies.
Godfread told the Budget Section people are seeing higher costs for insurance – not only property, but auto.
“Last legislative session I don’t think anybody anticipated the length of a hard property market that we’re seeing right now,” Godfread said. “I’d argue it’s relatively unprecedented the length, the duration of our hard market. We’ve got inflationary issues, you’ve got supply chain issues, a number of different factors that are impacting our consumers. Many of you are probably seeing those rates increase, whether its homeowners or auto insurance. You’re likely getting those phone calls just like we are.”
Godfread says the study would also include a look at building codes, and looking at some unification in building codes across the state.
“The reality of the situation is we’re getting to a point where insurers are saying if community’s doesn’t have X level of building codes [then] we are not goin to write that risk, we are not going to enter into that market place,” Godfread said. “We are not in that place yet in North Dakota. But California, Louisiana, Florida, you look at a number of other states are facing that availability crisis. How do we prevent that from coming to North Dakota?”
Godfread plans to have recommendations ready for the 2025 Legislature. He says he believes time is of the essence.
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