Press Release

The value of coastal exposures along the Atlantic and Gulf coasts have experienced a compound annual growth rate of about 4% over the past decade.

BOSTON, July 31, 2019 — Catastrophe risk modeling firm AIR Worldwide has released its “Coastline at Risk” analysis containing AIR's most recent estimates of the total insured value of residential and commercial properties in states along the Eastern Seaboard and Gulf Coast of the United States.

Despite the rising risk from hurricanes, the population along the coast has continued to rise every year since 2000, except in 2005 when hurricanes Katrina, Rita, and Wilma struck the U.S. coast. With the population growth comes increasing coastal exposure values. While construction slowed considerably following the recession, housing prices and construction costs have continued to increase at a moderate pace. The data reflects both the increase in population and in construction costs. The chart below shows AIR’s latest industry exposure values in coastal states, as well as coastal counties within them.

Estimated Insured Value of Exposure in Billions USD

State

2012

2015

2018

Coastal Counties

State Total

Coastal Counties

State Total

Coastal Counties

State Total

Alabama

118

918

128

1015

139

1090

Connecticut

568

879

675

1025

754

1142

Delaware

82

209

93

241

105

262

Florida

2862

3640

3201

4058

3595

4582

Georgia

107

1932

109

2171

126

2460

Louisiana

294

823

329

896

354

968

Maine

165

286

184

322

208

361

Maryland

17

1293

18

1476

21

1649

Massachusetts

850

1561

952

1765

1082

1997

Mississippi

61

469

71

527

78

564

New Hampshire

64

279

74

328

85

371

New Jersey

714

2130

795

2452

888

2700

New York

2923

4724

3365

5571

3751

6200

North Carolina

163

1795

178

2014

196

2246

Rhode Island

58

207

71

241

79

267

South Carolina

239

844

238

931

272

1037

Texas

1175

4581

1363

5358

1585

6197

Virginia

182

1762

198

2078

223

2307

©2019 AIR Worldwide - Information in this document is subject to change without notice.


Over the last decade, the United States has experienced a significant increase in the number and value of exposed coastal properties that will continue to contribute to increasing hurricane losses for insurers. The report has been updated to chart the continuing growth in the total insured value of these exposed coastal properties since AIR’s last update in 2013.

Link to analysis: https://airww.co/CoastlineAtRisk2019

About AIR Worldwide

AIR Worldwide (AIR) provides risk modeling solutions that make individuals, businesses, and society more resilient to extreme events. In 1987, AIR Worldwide founded the catastrophe modeling industry and today models the risk from natural catastrophes, terrorism, pandemics, casualty catastrophes, and cyber incidents. Insurance, reinsurance, financial, corporate, and government clients rely on AIR’s advanced science, software, and consulting services for catastrophe risk management, insurance-linked securities, longevity modeling, site-specific engineering analyses, and agricultural risk management. AIR Worldwide, a Verisk (Nasdaq:VRSK) business, is headquartered in Boston, with additional offices in North America, Europe, and Asia. For more information, please visit www.air-worldwide.com.


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