The Property Casualty Insurers Association of America is calling on the North Carolina Insurance Underwriting Association to publicly disclose its financial operations a day after a national insurer said it is leaving the market because of assessments.

PCI said it will ask the board of the North Carolina Insurance Underwriting Association to release this information at a meeting of the Underwriting Association's board on Monday.

The North Carolina Insurance Underwriting Association, commonly known as the Beach Plan, is the residual property market for coastal property owners. It was created in 1969 for barrier islands and its authority has grown since then.

PCI said it wants the information because there is a need for full analysis of the stability of the state's residual market for coastal property insurance. The Des Plaines, Ill.-based association said the plan is growing at a rate of $877 million a month of coastal exposure.

"The current trend is evidence that the Beach Plan has turned into the market of first resort for many coastal property owners," Robert Herlong, vice president and regional manager for PCI in Raleigh, N.C., said in a statement

PCI said it estimates that the state insurance fund has no more than $1.5 billion available to pay hurricane losses, which is not enough to cover the $67.8 billion of exposure.

The demand for disclosure comes one day after it was disclosed that Farmers Insurance is leaving the state of North Carolina's homeowners market. The insurer is the ninth largest in the state, and is doing so because it cannot justify doing business in the state because of the potential assessments.

PCI said it is dong an actuarial analysis to better understand the state's future exposures, but the Beach Plan has refused to release its probable maximum loss and the adequacy of its current rate structure. It has also declined to release a list of its members.

The Beach Plan, along with the North Carolina Joint Underwriting Association (FAIR Plan), the state's residual property market for noncoastal properties, are independent companies set up by state statute.

On official at the Beach Plan declined to comment at this time, but confirmed there will be a meeting on this issue on Monday.

(This story was corrected on Aug. 19 at 8:54 a.m.)

Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader

Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
  • Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
NOT FOR REPRINT

© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.