Jan 30, 2007
SAN FRANCISCO - Governor Kathleen Babineaux Blanco today met with Risk Management Solutions, Inc., an international risk modeling company, as part of her three-day insurance outreach mission in California. This trip is the next step in the Governor's continuing efforts to bring affordable insurance home to Louisiana.
"After meeting with insurance risk modelers and learning what factors into their science, I am even more convinced that Louisiana is taking the right steps toward affordable insurance," Governor Blanco said. "It has been a tough journey since Hurricanes Katrina and Rita. Because we have taken these bold steps forward - adopting statewide building codes, new flood elevation levels, reforming levee boards and dedicating offshore oil revenue to coastal restoration and hurricane protection --we are now in a position to attract insurance companies to our state, which will drive down insurance costs. One thing I know for sure; MRGO has got to go. This leaves a gaping hole in our defense and its presence will continue to affect risks in southeast Louisiana."
RMS provides products and services for the quantification and management of catastrophe risks, and has offices throughout North America, Europe and Asia. RMS recently completed a risk analysis of New Orleans. Having heard the Louisiana story, they have offered to update that report to reflect Louisiana's mitigation efforts. RMS also offered a number of steps Louisiana can take to directly link that mitigation to insurance rates.
"This healthy dialogue with all sectors of the insurance industry is critical to our efforts on behalf of Louisiana's citizens," Governor Blanco said. "We are using this valuable input to develop a comprehensive solution, one that will ultimately provide confidence among insurers and affordable protection for our people."
The meeting today follows a dialogue Monday with AIR Worldwide, another international risk modeler. With this portion of her outreach mission concluded, The Governor heads to La Quinta, where she and Commissioner of Insurance Jim Donelon will address the Property and Casualty Insurers of America Board of Governors, telling Louisiana's story.
PCI is composed of more than 1,000 member companies, writing more than $194 billion in annual premiums, representing 40.1 percent of the nation's property and casualty insurance market.