Hurricane Rita Threatens Texas with $740 Billion of Insured Property at Risk in its Coastal Counties
BOSTON, Sept. 22, 2005 — A report recently completed by AIR Worldwide Corporation estimates that more than 35% of the insurance industry's property exposure in Gulf and East Coast states is in coastal counties. The insured value of properties in coastal counties from Texas to Maine is nearly $7 trillion dollars, which comprises approximately 16% of the industry's total U.S. exposure.
"While the debate over the potential impact of global warming remains inconclusive, there is no doubt that the economic cost of hurricanes is increasing," said Karen Clark, president and CEO of AIR Worldwide Corporation. "The insured value of properties on the coast of the United States has roughly doubled in the past decade and the continued growth in the number and value of insured properties along the coast will be a concern for the insurance industry for many years to come."
Based on the insured values of properties along its coast, the state of Texas is at considerable risk as Hurricane Rita approaches. Texas, with $740 billion of insured property value along its coast is one of only three states with more than $700 billion of insured properties in coastal counties. Only New York and Florida have more insured property value along their coasts.
The complete report is available here.
About AIR Worldwide Corporation
AIR Worldwide Corporation (AIR) is a leading risk modeling company helping clients manage the financial impact of catastrophes and weather. Utilizing the latest science and technology, AIR models natural catastrophes in more than 40 countries and the risk from terrorism in the United States. Other areas of expertise include site-specific seismic engineering analysis, catastrophe bonds, and property replacement cost valuation. A member of the ISO family of companies, AIR was founded in 1987 to provide its insurance, reinsurance, corporate, and government clients a complete line of risk modeling software and consulting services that produce consistent and reliable results. Headquartered in Boston, AIR has additional offices in North America, Europe, and Asia. For more information, please visit www.air-worldwide.com.