AIR Worldwide Provides Updated Coastline at Risk Analysis

July 31, 2019 / 3 min read

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
State	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.

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.