SOUTH MISSISSIPPI (WLOX) -
Four members of the state wind pool board just returned from London. They were on a mission to secure the lowest rate possible for the 46,000 South Mississippians who rely on the Wind Pool for insurance.
Board Member Mark Cumbest was the only local representative.
"You get insurance from the Wind Pool when you can't get it anywhere else, and there will always be a need for that," Cumbest said. "But at this point, it's one of the primary insurers, and it shouldn't be that way."
Cumbest said that is why it is even more important than ever to make this annual trip to England where much of the world's re-insurance coverage is written.
"We actually pay a premium to a re-insurer for the larger, huge risks," Cumbest said.
When it comes to buying re-insurance, there are several factors the companies take into consideration to determine the cost.
"One of the key components in the entire re-insurance program is the sheer number and the intensity of global catastrophic events," Cumbest said.
Also the local economy is a factor along with the number of those insured by the Wind Pool.
"There was a 13.6 percent increase in sales in 2011, with the Wind Pool the number of additional people is the Wind Pool is only 3.1%, which that is a good sign," Cumbest said.
There has not been an increase in the Wind Pool rates since July 2008 and the board hopes that will continue to be the case.
"It is too early to tell, but I feel positive about working out some type of a reasonable re-insurance program for the upcoming year," Cumbest said.
Other members of the wind pool board will head to Bermuda at the end of this February to meet with other re-insurers and the board hopes to purchase re-insurance and secure rates sometime in March.
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