Mississippi coastal property owners are set to see a 16% increase in windpool insurance rates beginning Jan. 1, 2026, according to Insurance Commissioner Mike Chaney.
The hike comes amid legislative changes affecting the Mississippi Windstorm Underwriting Association, also known as the windpool.
Speaking at the Neshoba County Fair, Chaney contrasted the upcoming property rate increase with a decline in auto insurance costs observed statewide since 2024. He reported that more than 1.1 million Mississippi drivers have received reductions in auto insurance premiums ranging from 1% to 7%.
“We’ve got another filing that came in Monday for another 120,000 that will be cut 3.8%,” Chaney said in a report from AM Best. “I will approve that one. I can guarantee you that.” He attributed the downward trend in auto rates to increased market competition.
In contrast, the coastal property insurance market is facing higher costs. Chaney said the state has directed over $400 million since 2005 toward subsidizing Gulf Coast rates by purchasing reinsurance, a strategy he described as unsustainable. He noted that a new model is being implemented to address the long-term viability of the windpool.
Chaney pointed to mitigation and stronger construction standards as key to addressing rising property costs. He described the concept of resiliency as building stronger homes, avoiding flood-prone areas, and reinforcing structures to withstand severe weather.
One such initiative, the Strengthen Mississippi Homes grant program, was recently halted. Chaney said the program, which was under the Mississippi Insurance Department’s oversight, was shut down July 1 after the legislature removed the department’s spending authority during a special session.
He said the decision left Mississippi as the only coastal state without a home-hardening program managed by an insurance regulator and overseen by a state auditor.
Separately, a proposal backed by the Mississippi Surplus Lines Association has been put forward to replace the shuttered grant program with a mitigation trust fund. Under this proposal, up to $10,000 would be made available to eligible coastal homeowners to retrofit properties against wind damage or build safe rooms. The fund would receive a one-time $5 million infusion, followed by $1.5 million annually, sourced from mandatory contributions by licensed insurers.
According to supporters of the initiative, homeowners who complete improvements under the program could qualify for premium reductions between 15% and 30%.
Chaney also told fairgoers that neighboring Alabama has finished more than 55,000 home hardening projects through its grant program. He said Alabama property owners are seeing rates 20% to 40% lower than Mississippi’s rates. In Louisiana, similar efforts have yielded quantifiable premium reductions.
A recent audit found that policyholders who upgraded their homes under Louisiana's Fortify Homes Program experienced an average annual rate decrease of 22%. Since the program’s expansion, the number of certified fortified roofs in the state has grown from just over 300 to more than 5,400 within a year.
"Where do you think people that need to live on the coast are going to go if the insurance keeps going up?" he asked. "Out of state."
Mississippi is not the only state seeking ways to address rising insurance costs. Alabama recently adopted HJR 220, a legislative resolution aimed at stabilizing coastal commercial insurance markets.
While Chaney did not directly comment on this resolution, the policy direction highlights a broader regional effort to confront similar pressures facing Mississippi.
In addition to talking about rates during the county fair, Chaney also announced his intention to run for reelection in 2027.
"I intend to keep doing the job that you elected me to do because insurance touches every life in this state and in this country, and it touches your wallets every single day," he said.
While saying he would seek reelection, he again lamented that the position wasn’t transitioned into an appointed role despite his continued calls to do so. A bill introduced earlier this year, HB 1180, proposed turning the insurance commissioner’s office into an appointed position, starting in 2028.
The bill outlined eligibility requirements including a bachelor’s degree and experience in insurance or risk management, and would have allowed governors to appoint commissioners with the consent of the state Senate. The bill ultimately stalled in committee, but Chaney reiterated his belief that the role would benefit from insulation against political influence.
Chaney has been pushing for this change since being elected insurance commissioner in 2007.
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