The commission will consist of seven yet-to-be-named members appointed by Bentley.

Attempts to reach the Alabama Department of Insurance for comment were not immediately successful. 

"We believe the commission should focus on a balanced, free-market approach, with emphasis on long-term solutions that benefit individuals and communities," says Liz Reynolds, state affairs manager for the Southeast for the National Association of Mutual Insurance Companies. "Risk-based pricing, actuarially sound rates, and loss mitigation should be the core of any proposed solution. Any reforms to the current regulatory system should have the objective of attracting capital, not scaring it away."

Just two counties, Mobile and Baldwin, make up Alabama's coastal exposure but damage from storms can occur far inland. About 12 percent of Alabama's insured exposure is located on the coast, according to data compiled by the Insurance Information Institute (I.I.I.) for a presentation given to the state's Coastal Recovery Commission late in 2010.

Exposure in Alabama's Beach Plan, the last-resort insurer for the state's two coastal counties, has soared but remains much smaller than residual markets in other Gulf States. Insurers such as Farmers, Allstate and Alfa have dropped wind coverage in recent years.