NU Online News ServiceCitizens Property InsuranceCorp.

Counting commercial lines policies, 7,213 total policies wereinspected. More than 52 percent of commercial l policies wereincreases, with 8 percent getting a decrease.

Citizens is planning to spend about $41.4 million over the nexttwo years inspecting 44,220 policies. About 16 percent have beenfully processed by underwriters.

According to an outline in the report, Citizens expects apremium gain of $19 million in 2011 and $124 million in 2012 for atotal of $143 million. Minus expenses, the net result is $101.6million.

At the start of the year, Florida's Commission on Hurricane LossProjection Methodology's Windstorm Mitigation Committee concluded that windstorm mitigation discounts have hurt thestate's property insurance market, driven by unclear decisions onhow mitigation credits are applied to the ratemaking process. Thecurrent system has failed to operate as it should, the committeesaid.

The Florida legislature in 2005 mandated that all propertyinsurers give discounts to properties that take steps to mitigatewind loss.

Recently, Insurance Commissioner Kevin McCarty listed mitigationdiscounts among a handful of non-hurricane-related cost driversthat insurers say have decreased underwriting profits for many ofthem. In the 2010 legislative session, language aimed at stoppinginappropriate mitigation discounts was put into SB 2044, which waswidely supported by state lawmakers and the industry but was vetoed by Gov. Charlie Crist.