After these extraordinary losses, reinsurance companies, insurers that share the cost of claims with primary companies, such as homeowners insurers, said that they could not assume so much risk and that primary companies must reduce their potential losses. During the Atlantic hurricane season, which lasts from June to November, every coastal state from Florida to Maine could potentially be hit by a storm.
Early methods[ edit ] Merchants have sought methods to minimize risks since early times. Methods for transferring or distributing risk were practiced by Chinese and Babylonian traders as long ago as the 3rd and 2nd millennia BC, respectively.
The Babylonians developed a system which was recorded in the famous Code of Hammurabic. If a merchant received a loan to fund his shipment, he would pay the lender an additional sum in exchange for the lender's guarantee to cancel the loan should the shipment be stolen, or lost at sea. Circa BC, the inhabitants of Rhodes created the ' general average '.
This allowed groups of merchants to pay to insure their goods being shipped together. The collected premiums would be used to reimburse any merchant whose goods were jettisoned during transport, whether due to storm or sinkage.
The first known insurance contract dates from Genoa inand in the next century maritime insurance developed widely and premiums were intuitively varied ms windstorm underwriting association risks.
Insurance became far more sophisticated in Enlightenment era Europeand specialized varieties developed.
Lloyd's Coffee House was the first organized market for marine insurance. Property insurance as we know it today can be traced to the Great Fire of Londonwhich in devoured more than 13, houses. The devastating effects of the fire converted the development of insurance "from a matter of convenience into one of urgency, a change of opinion reflected in Sir Christopher Wren 's inclusion of a site for 'the Insurance Office' in his new plan for London in Initially, 5, homes were insured by his Insurance Office.
By the end of the seventeenth century, London's growing importance as a center for trade was increasing demand for marine insurance. In the late s, Edward Lloyd opened a coffee housewhich became the meeting place for parties in the shipping industry wishing to insure cargoes and ships, and those willing to underwrite such ventures.
These informal beginnings led to the establishment of the insurance market Lloyd's of London and several related shipping and insurance businesses. It was the world's first mutual insurer and it pioneered age based premiums based on mortality rate laying "the framework for scientific insurance practice and development" and "the basis of modern life assurance upon which all life assurance schemes were subsequently based.
By the late 19th century governments began to initiate national insurance programs against sickness and old age.
Germany built on a tradition of welfare programs in Prussia and Saxony that began as early as in the s. In the s Chancellor Otto von Bismarck introduced old age pensions, accident insurance and medical care that formed the basis for Germany's welfare state.
This gave the British working classes the first contributory system of insurance against illness and unemployment. The insured entities are therefore protected from risk for a fee, with the fee being dependent upon the frequency and severity of the event occurring.
In order to be an insurable riskthe risk insured against must meet certain characteristics. Insurance as a financial intermediary is a commercial enterprise and a major part of the financial services industry, but individual entities can also self-insure through saving money for possible future losses.
Insurability Risk which can be insured by private companies typically shares seven common characteristics:The MWUA provides a method whereby an adequate market for windstorm and hail insurance may be provided in the Coastal Area of Mississippi.
The MRPIUA provides a program to assure an adequate market for residential fire and extended coverage insurance in rural and other. The Mississippi Windstorm Underwriting Association (MWUA) was established by the state legislature to help provide an adequate market for windstorm and hail insurance for the coastal area of Mississippi.
Also known as the “wind pool,” MWUA is operated and managed by specialized staff of the Mississippi State Rating Bureau and serves as . Mitigation Discounts Available.
Use the index below to go directly to a particular section on this page: Mitigation Discounts by the Mississippi Windstorm Underwriting Association (MWUA) Other Discounts; Mitigation Discounts by the Mississippi Windstorm Underwriting Association (MWUA). ACORD Forms Home ACORD Forms Web Version Contact Us Click a button to re-sort the list.
Click the an image in the PDF column to view the ACORD Instruction Guide. The Topic. After Hurricane Andrew in , insurers realized that losses from hurricanes could be much higher than they had previously thought.
Hurricane Katrina, in , which cost insurers more than $41 billion at the time, confirmed their fears. Mississippi State Rating Bureau Wirtz Road Flowood, Contacts. Mississippi State Rating Bureau Wirtz Road Flowood, MS Map / Directions. P O Box Jackson, Mississippi Mississippi Windstorm Underwriting Association.