What is the role of the South Carolina Wind and Hail Underwriting Association?
The role of the Wind Pool is to provide wind and hail coverages for residential and commercial property applicants who are unable to secure these coverages in the coastal area. • Are rates in the Wind Pool generally higher than in the admitted market? Yes, as a residual market mechanism, the Wind Pool is not intended to offer rates competitive with the admitted market. Rates for policies issued by the association must be adequate and established at a level that permits the association to operate as a self sustaining mechanism. The Wind Pool insures those wind and hail risks that the admitted or surplus lines market refuses to write due to their high risk nature. • What is a residual market? A residual market is a mechanism or process designed to be a “market of last resort.” In other words, it is designed to insure risks that are otherwise not insurable in the admitted or standard market. • What is an admitted or standard market? An “admitted” or “standard market” consists of insurers
