ABIR supports natural disaster protection legislation

The Association of Bermuda Insurers and Reinsurers (ABIR), a member of the Smarter Safer Coalition, today announced its support for hazard mitigation legislation introduced by US Reps. Tom Rooney (R-FL) and Bennie Thompson (D-MS). The legislation provides a tax credit to low-income homeowners who take action to protect their property to reduce its vulnerability to damage from natural disasters such as earthquakes or hurricanes.

“The best role for the government is to encourage citizens to protect their property against damage from natural catastrophes. One dollar spent today will save four dollars in future repair costs,” noted Bradley L. Kading, president of ABIR. “The worst role for the government is to subsidize annual insurance costs. The one time investment in mitigation protects both people and property and prevents unwise incentives that increase risk and put families in harms’ way.”

Kading also noted: “Bermudians have a long history of successful hazard mitigation. Bermuda sits in the North Atlantic and is frequently exposed to hurricanes -- on average a storm makes land fall every three years; a terrible storm every decade. Yet Bermudians have property that has survived for centuries. Roofs rarely blow off, windows don’t blow in. Building codes and self preservation encourage common sense hurricane protection.”

Kading also noted Bermuda is a leader in water conservation, every property retains rain water for drinking and household use; and in energy conservation, all roofs are painted white to reflect away the sun’s heat.

Bermuda’s reinsurers are the largest providers of natural catastrophe reinsurance in the US market and have more than 2,000 employees in Bermuda. “Our members ‘live’ what they do for a living – they manage property catastrophe risk for their clients and their families,” Kading said.

ABIR has 22 members which wrote $62 billion in global gross written premium on a capital base of $90 billion in 2010.