On this episode of Carolina Newsmakers, Don Curtis interviews Mike Causey, North Carolina’s Insurance Commissioner, recently reelected for his third term. The discussion highlights the evolving challenges of the insurance industry, including disaster recovery, fraud prevention, and the affordability of policies, while offering practical advice for consumers.
Causey begins by addressing the devastating effects of Hurricane Helene, which inflicted significant damage across 25 counties in western North Carolina. With an estimated $53 billion in total losses, Causey emphasizes the importance of flood insurance, as standard homeowners’ policies do not cover flood-related damages. He explains that only 2-3% of affected homeowners had flood insurance, underscoring the need for broader awareness and preparedness. Causey shares his collaboration with FEMA and other agencies to expedite disaster relief, though he acknowledges the ongoing struggles of displaced families and businesses.
Turning to automobile insurance, Causey notes that North Carolina boasts some of the lowest average premiums in the nation, ranking sixth overall. However, he warns that rising costs driven by inflation, advanced vehicle technology, and distracted driving trends are contributing to upward pressure on rates. He stresses the importance of safe driving practices, including the adoption of hands-free technology to reduce accidents caused by cell phone use.
The conversation also delves into homeowner’s insurance, with Causey providing actionable advice for consumers. He recommends discussing replacement value coverage with local agents to ensure adequate protection against total losses. He also highlights the benefits of bundling policies, though he encourages shopping around to find the best fit for individual needs. For liability insurance, Causey advocates for umbrella policies, which provide extensive coverage at a relatively low cost.
Another significant focus is the fight against insurance fraud, which drives up costs for all policyholders. Causey praises the efforts of the Department of Insurance’s criminal investigators but calls for additional resources to combat the growing prevalence of fraud across the state. He also highlights the problem of uninsured motorists and advocates for hiring more state troopers to enhance road safety.
Causey discusses legislative priorities for 2025, including a renewed push for a hands-free driving bill and funding increases for key programs like the Seniors Health Insurance Information Program (SHIIP). He also voices concerns about federal duplication of state regulatory efforts, calling for the abolition of the Federal Insurance Office to redirect resources to more impactful initiatives.
The episode concludes with Causey’s reflections on his goals for his third term. He prioritizes consumer protection, particularly in resisting unwarranted rate increases, and strengthening the department’s capabilities to serve North Carolinians effectively. He encourages residents to utilize the Department of Insurance’s resources, including their website and toll-free helpline, for assistance with disputes and questions about coverage.
