“While the scientific debate over the effects of global warming on the frequency and severity of hurricanes remains inconclusive, 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,” said S. Ming Lee, president and CEO of AIR Worldwide.
As a result of the devastating impact of Hurricane Katrina, the total insured value of properties in the coastal counties of Louisiana has grown at the lowest compound average annual rate of all coastal states, or just more than 2 percent. Mississippi coastal counties, also impacted by Hurricane Katrina, averaged a 5 percent annual increase, the second lowest of all coastal states. The insured value of residential and commercial properties in coastal counties of Florida and New York passed $2 trillion each.
Overall, 38 percent of the total exposure in Gulf and East Coast states is located in coastal counties, which accounts for nearly 17 percent of the total value of properties in the United States.