Mitigation Experts Convene At Travelers Institute

NU Online News Service, Dec.7, 4:36 p.m. EST

The Travelers Institute said it convened a panel of experts to discuss strategies for making homes more storm resistant at what it called a Partnership on Mitigation Summit in Windsor, Conn.

In addition to holding the meeting "to promote and raise awareness of catastrophe readiness" the company said it would offer a policy with 35 percent hurricane premium credit in certain Atlantic and Gulf coast states for homes meeting standards designed to resist tropical storm impacts and hurricane winds.

Eric Nelson, Travelers Vice President, Personal Insurance said, "Homes built to meet these stringent standards are better able to withstand severe weather, reducing property losses and saving lives, and we want to promote and raise awareness of these smarter building practices."

He added that, "Building stronger homes is a key principle of the Travelers Coastal Hurricane Wind Zone Plan: our proposal to improve the availability and affordability of catastrophic wind coverage in communities along the Gulf and Atlantic coasts."

The company hopes, said Mr. Nelson, that its initiative and premium credit "will encourage homeowners, builders and building officials to adopt these disaster resistant standards."

Mr. Nelson served as moderator for The Institute's Partnership on Mitigation Summit at Travelers Claim University, whose panelists included:

o Julie Rochman, president and chief executive officer - Institute for Business & Home Safety.

o Dail Rowe, senior scientist, regional manager - WeatherPredict Consulting, Inc.

o Manuel Lonfat, managing director - Travelers.

oJay Guin, senior vice president of modeling and research - AIR Worldwide.
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oAnn Roberson, manager - SC Safe Home Program, South Carolina Department of Insurance.

Ms. Rochman said in a statement, she was joining with The Travelers Institute "to get the word out about the importance of fortifying homes to be more resilient to natural disasters. When homes are built or retrofitted to make them more durable, we are protecting property, saving lives and helping to reduce costs to consumers and insurers."

The IBHS Fortified ... for safer living program is one example of a designation that would qualify a home for Travelers' new 35 percent hurricane premium credit, the company said.

Mr. Rowe said his firm believes "investment in mitigation and other policies that proactively manage risk are the most promising ways to help storm-exposed communities safeguard themselves from natural catastrophes, both physically and financially."

WeatherPredict Consulting, Inc., he said, is developing innovative, cost-effective mitigation approaches for both new construction and retrofit applications for the existing built environment.

AIR Worldwide's Mr. Guin, described how building codes evolved in response to catastrophes such as Hurricane Andrew, how changes to building codes are incorporated into catastrophe models and how catastrophe models can be used to assess the impact of mitigation features.

AIR post-disaster damage surveys have found that mitigation efforts have proven to be quite effective," he remarked.
SC Safe Home Program Manager, Roberson, presented these key findings:

o According to a June 6, 2006 FEMA press release, for every dollar spent on mitigation, society saves $4 in potential losses and reconstruction costs. Based on this information, she said the SC Safe Home Program has reduced the potential loss and future reconstruction costs from a hurricane or severe wind event impacting the state by more than $15 million.

o Homeowners, she said, have reported, on average, a 29 percent savings in their energy costs after replacement windows have been installed through SC Safe Home.

o Huses retrofitted through SC Safe Home are more attractive risks to insurance companies. Homeowners have reported savings in their insurance premiums of up to 23 percent.

Joan Woodward, Travelers executive vice president of public policy and head of The Travelers Institute, said "Potential changes in hurricane activity and a significant growth in property development have left U.S. coastlines vulnerable to catastrophic risks."

"As a result, consumers, builders and regulators are asking how to mitigate risk. Loss experience data shows dramatic benefits of mitigation strategies that can effectively reduce potential future hurricane losses. Today's summit brought together a range of experts to begin collaborating on mitigation strategies that can provide significant value to society by creating more resilient communities."