RISK MANAGEMENT IS THE KEY, SAYS LLOYD’S MAN IN MISSISSIPPI

Homes being rebuilt in the vulnerable areas of Mississippi hit by hurricane Katrina in 2005 will only be insurable if they are built more strongly than their destroyed predecessors, said Frank Murphy, CEO of Lloyd’s broker Thompson Heath & Bond, in a visit to Pass Christian, near Biloxi. Mr Murphy said that a scarcity of affordable insurance had hampered the state’s recovery, while visiting one new home that had been rebuilt to exacting standards, with the lowest floor sitting 23.5 feet above seas level, and the walls reinforced with steel and finished in concrete. The builder said that it could withstand constant winds of 300mph, while the roof could survive winds of 250mph. The lowest floor also has hydraulic vents to let floodwaters flow through. The Mississippi wind pool is offering reduced rates to consumers who add hurricane-resistant features to their homes.