AIR Worldwide Analysis Indicates more than 35 per cent of the Insured Value of Properties in Gulf and East Coast States is in Coastal Counties

  • Texas has $740 Billion of Insured Property at Risk in its Coastal Counties
A report recently completed by AIR Worldwide Corporation, a wholly-owned subsidiary of Insurance Services Office, Inc (ISO), estimates that more than 35 per cent 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 per cent 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 its properties, the state of Texas, recently hit by Hurricane Rita, is still at considerable risk. Texas has $740 billion of insured property value along its coast and is one of only three states to have more than $700 billion of insured properties in coastal counties, with only New York and Florida having more than Texas.

The complete report is available here

About AIR Worldwide Corporation
AIR Worldwide Corporation (AIR) is a leading risk modelling company helping clients manage the financial impact of catastrophes and weather. Utilising 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.

About ISO
Insurance Services Office (ISO) Ltd is a leading provider of products and services that help measure, manage and reduce risk. ISO provides data, analytics and decision-support solutions to professionals in many fields, including insurance, finance, estate agency, health services, government and human resources. Professionals use ISO's databases and services to classify and evaluate a variety of risks and detect potential fraud. Around the world, ISO's services help customers protect people, property and financial assets. ISO's customers in the UK include Admiral Group, AXA Insurance, Chaucer Insurance, Highway Insurance, Lloyd's, Rubicon Corporation and Zurich Financial Services.

For more information please contact:
Manuela Whittaker
IBA – PR for ISO
Tel: 01780 721433
mwhittaker@iba-europe.com

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