The insurance industry is bailing out of the Mid-Atlantic coast, with some analysts predicting government intervention as the only answer – along the lines of Florida’s state-owned Citizens Property Insurance Corp.

The insurance industry is paying attention to climate change and to increased storm activity, and that is translating into skyrocketing premiums in Hilton Head and many of the other resort areas along the North and South Carolina coastlines

Premiums for single-family residences along the ‘Grand Strand’ have seen 100 percent increases and condominiums have seen up to 700 percent increases. The cost of insurance has been a contributor to drops in housing prices in the area. In Hilton Head alone, sales were down 40 percent over last year and prices dropped 6 percent.

While climate change and global warming have plenty of skeptics, said state Insurance Director Eleanor Kitzman, “The insurance industry believes in this issue and it is affecting the way they do business – which affects the citizens of South Carolina and the economy of this state and that gets my attention.”

Not only are premiums increasing dramatically, she said, but the availability of insurance is not keeping pace with the demand because of the continuing growth in coastal areas.

“The impact of this issue extends beyond rich people at the beach,” Kitzman said. “And they don’t have lifestyles, they have jobs. They have jobs in businesses and industries that impact and benefit the economy of this entire state.”

For example, BMW – one of the north state’s premier employers – likely wouldn’t be in South Carolina without the Port of Charleston. But the supply of insurance – at any cost – doesn’t seem likely to keep up with the demand.