Which policy strategies for promoting mitigation are most successful?

Kathleen McCullough (Associate Dean – College of Business), Lori Medders (Center Director) and Sue Ellen Smith (Center Program Manager) recently studied State and Local Policy Instruments for Promotion of Catastrophe Mitigation (findings to be published in a future issue of the Journal of Insurance Regulation).

The mitigation investment decisions of property owners are subject to multiple factors other than just the cost-benefit expectations. Uncertainty regarding cost savings, the financial capacity (and uncertainty) of the decision maker, insurance costs, and responsiveness of those costs to mitigation efforts are just some of the factors contributing to choices made regarding whether and to what extent to mitigate against disaster.

Given the variety of factors which contribute to the mitigation decision, the authors assert a broad framework for public policy aimed at promoting mitigation aims first for accountable and empowered property owners, specific mitigation measures most likely to provide greatest value, an engaged and collaborative private sector, and smart messaging.