As severe weather affects the U.S. coasts, insurance carriers' room for adequate catastrophe risk capacity is diminishing. With carriers rolling back their capacity, commercial property owners along the coast must contend with rate, valuation and deductible increases. (Credit: pisaphotography/Shutterstock.com)
Coastal areas across the U.S. have experienced recent changes in weather patterns. According to the National Oceanic and Atmospheric Administration, in 2022, 18 separate weather and climate disasters cost at least $1 billion in damages in the U.S. Most were hurricanes, storms and floods.
The United States Geological Survey predicts that over the next hundred years in California, about half a million people and $100 billion worth of coastal property will be at risk. Florida recently suffered between $50 billion and $65 billion in damages from Hurricane Ian — the second-largest insured loss on record. These weather incidents result in a lack of carrier capacity enhanced by rising rates and a trend of properties being valued incorrectly.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
