Mississippi Stabilizes Wind Pool Insurance Premiums with $19 Million

Property owners insured in the Mississippi wind pool may soon find some relief from rising premium costs with the transfer of $19 million from the Mississippi Insurance Department to the Mississippi Windstorm Underwriting Association, the official name for the wind pool.

The transfer of funds is in process, and should be completed by the first week of January, according to Insurance Commissioner Mike Chaney.

Of the total, $9 million will come from the Hurricane Disaster Reserve Fund, which was created in 2006 to defray the state’s share of any non-federal matching requirements for Federal Emergency Management Agency grants associated with Hurricane Katrina and other disasters.

The remaining $10 million will come from the Mississippi Windstorm Underwriting Association Reinsurance Assistance Fund, which was created by the Legislature in 2007 specifically for the purpose of defraying the expenses and costs associated with the purchase of reinsurance.

“The transfer of these funds should help stabilize premium rates for wind pool policyholders. This is just one of many efforts the Department is undertaking to help coastal policyholders. We are continually seeking out and researching more ways to bring rates down on the coast,” Chaney said.

Wind Pool Executive Director Joe Shumaker said that with the infusion of the $19 million, the governing board for the pool does not anticipate any rate increases in 2010.

Chaney noted that the wind pool offers other options for reducing premium rates, including a sliding deductible and mitigation credits.

Topics Mississippi