Rise in coastal properties US industry’s biggest hurricane risk
Almost three years since Hurricane Katrina devastated properties and, in turn, the insurance industry, little along the US coast has changed.
A report by catastrophe risk modeller AIR Worldwide says despite the weakening of the real estate market, over the past three years the insured value of properties in coastal areas has grown by more than 7% a year.
The report finds it alarming that the increase in the number of exposed properties “remains the largest factor affecting insurers’ hurricane risk today”.
AIR President and CEO S Ming Lee says the scientific debate over the effects of global warming on the frequency and severity of hurricanes is still inconclusive.
“Yet there is no question that the significant increase in the number and value of exposed properties over the last decade has and will continue to contribute to increasing hurricane losses for insurers,” he said.
A report by catastrophe risk modeller AIR Worldwide says despite the weakening of the real estate market, over the past three years the insured value of properties in coastal areas has grown by more than 7% a year.
The report finds it alarming that the increase in the number of exposed properties “remains the largest factor affecting insurers’ hurricane risk today”.
AIR President and CEO S Ming Lee says the scientific debate over the effects of global warming on the frequency and severity of hurricanes is still inconclusive.
“Yet there is no question that the significant increase in the number and value of exposed properties over the last decade has and will continue to contribute to increasing hurricane losses for insurers,” he said.