The Florida Commission on Hurricane Loss Projection Methodology Windstorm Mitigation Committee recently heard testimony that will be used to prepare a mandated report on windstorm mitigation discounts to the Florida Legislature and Executive Branch. Among the presentations given was one from M&A’s Peter Scourtis.
Peter spoke about risk premium and the impact of mitigation on premiums. He illustrated the impact by using an example of non-mitigated homes compared to mitigated homes, saying that mitigation credits are not factored adequately in the reinsurance costs. As a result, non-mitigated homes are often bad economic risks.