Developing Pre-Disaster Resilience Based on Public and Private Incentivization was published as a ground-breaking work that describes how the nation can achieve resilience in a cost-effective manner for hazards through a holistic and integrated set of public, private and hybrid programs that incentivize action. The case for incentivization has been reinforced with a new study for Florida wind hazards in which the returns on investments are 4 times the costs. Insurance plays a unique role in helping to provide incentives. Examples include:
- USAA is providing a discount on homeowner’s insurance premiums for its members who live in recognized Firewise Communities.
- Residents of the Village of South Holland, IL receive a 25% discount on Federal Flood Insurance, and, a 25% rebate on flood control projects, with a maximum rebate of $2,500 per home.
- MyStrongHome provides financing for residential mitigation using insurance premiums reductions to pay for the cost of construction within a five year period.
- Zurich Insurance Group has endorsed risk-based insurance that could be coupled with long-term loans tied to the property to enhance resilience.
- Zurich also proposes that means-tested vouchers be used by property owners to cover part of the cost of a multi-year loan to invest in mitigation measures, and cover a portion of a risk-based insurance premium.
The purpose of this project is to provide a survey of incentives provided with the ultimate goal of assessing the effectiveness of the incentives.
Philip Schneider, AIA Director, Multihazard Mitigation Council
Competencies needed by the students involved
- An understanding of insurance and underwriting
- Analytical skills – manipulate data and apply statistical analysis
- Knowledge of building a survey
- Research – identify current market options as well as gauge interest in this
- Creativity and Innovation – thinking outside of the box and having FUN doing it!
- Gather & analyze market data on overall awareness of incentives
- Determine if there is any correlation between credit given and consumer behavior
- A research report that identifies and analyzes the incentives provided.