Has anyone heard any good news about the insurance industry lately?
If you’re a homeowner, chances are your premiums have skyrocketed—or worse, your insurer has pulled out of your state entirely. From the West Coast to the Midwest, Americans are facing an insurance crisis marked by disappearing coverage options and jaw-dropping rate hikes. In states like California and Florida, entire markets are collapsing under the strain of mounting natural disasters and inflation-driven rebuilding costs.
You don’t have to look far to see the damage: 72,000 property owners in California recently lost coverage after State Farm decided not to renew their policies, citing wildfire risks. Meanwhile, Florida residents have seen property insurance costs surge by 57% since 2015, with no relief in sight.
This growing crisis should have sparked a full-court press from insurance regulators. Instead, the National Association of Insurance Commissioners (NAIC)—the organization responsible for overseeing the industry—has turned its attention inward, embarking on a $6 million renovation of its Kansas City headquarters. While families across the country worry about losing their homes to floods, fires, and tornados, NAIC officials are choosing new office furniture with a $2.5 million price tag.
A new report from the Buckeye Institute shows that the lack of transparency and oversight at nongovernment organizations (NGOs) allows entities like the NAIC to benefit while consumers in states across the country pay the price. The American Consumer Institute also wrote a report on the NAIC’s opacity, while the Competitive Enterprise Institute highlighted the concerning political agenda the NAIC is pursuing with regard to its endorsement of European-style regulations.
The consequences of this neglect are far-reaching. States in Tornado Alley—Nebraska, Kansas, Texas—are seeing double-digit increases in premiums. Missouri, too, is feeling the strain. A PolicyGenius analysis found that home insurance premiums in Missouri jumped 21% between 2022 and 2023. That’s on top of a 2024 MarketWatch study showing Missouri’s average annual premium is now $3,609—over $1,300 more than the national average.
Insurers blame climate change, inflation, and higher construction costs. But while they’re exiting high-risk markets and shifting costs to consumers, the regulators charged with oversight are choosing silence—and new office space.
This isn’t just bad optics. It’s a failure of public responsibility. When homeowners remodel after a storm, they do so with sacrifice—budgeting, borrowing, and rebuilding from the ground up. When the NAIC wants a new conference room, it just collects more fees from member organizations—many of which are simultaneously abandoning American families in their moment of need.
At a time when bold, innovative solutions are desperately needed, the NAIC’s luxury remodel sends a chilling message: the organization has the resources to act but lacks the will.
Thankfully, leaders like Representative Jason Smith, Chair of the House Ways and Means Committee, are stepping up to demand accountability. With Republicans now in control of the White House and both chambers of Congress, there’s a critical opportunity to bring oversight to NGOs like the NAIC—and to re-center consumer protection in national insurance policy.
The storm is already here. It’s time the insurance industry’s watchdog remembered who it’s supposed to protect—before more families are left in the rubble.
Caleb Arthur is the Founder and CEO of Sun Solar.
