Hurricanes, with their immense power and devastating potential, are among the most destructive natural disasters. The impact of a single storm can ripple through communities, causing billions of dollars in damage and affecting millions of lives.
Accurate assessment of hurricane risk is vital for industries such as insurance, real estate, banking, and emergency management. These assessments guide crucial decisions on pricing, loss reserves, and exposure to catastrophic risk, ensuring stability and preparedness in the face of such events.
Looking Ahead to the 2024 Hurricane Season
The National Oceanic and Atmospheric Administration (NOAA) anticipates a return to La Niña conditions in the Pacific Ocean, reducing vertical wind shear in the North Atlantic. Additionally, North Atlantic Ocean sea surface temperatures are already warmer than any previous year on record.
These conditions point towards another potentially significant hurricane season, underscoring the need for continued vigilance and preparedness.
The 2024 Hurricane Risk Landscape
The 2024 CoreLogic Hurricane Risk Report offers a comprehensive analysis of hurricane risk in the U.S., providing essential insights for property owners, insurers, and policymakers.
Underestimating the impact of natural catastrophes can lead to a dangerous financial imbalance where insurance payouts surpass collected premiums. This discrepancy can create an unstable situation for insurers and other stakeholders.
Therefore, it is crucial to annually update hurricane risk assessments to reflect changes in environmental conditions and shifts in exposure.
In the 2024 Hurricane Risk Report, CoreLogic identified that across the U.S. Gulf Coast and East Coast:
- Over 32.7 million residential properties, with a total reconstruction cost value of $10.8 trillion, are at moderate or greater risk of hurricane wind damage.
- Approximately 7.7 million properties, with a reconstruction cost value of $2.3 trillion, are at risk of storm surge flooding.
By understanding and mitigating hurricane risks, stakeholders can better prepare for, respond to, and recover from these catastrophic events.
CoreLogic remains committed to offering data and tools to help navigate the complexities of hurricane risk, ensuring that communities and industries are equipped to weather the storm.
2024 CoreLogic Hurricane Risk Report
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