Texas Floods Urge Action, According to Moody's Assessment
In a recent analysis, Moody's RMS, a leading global catastrophe risk modeling and solutions company, has estimated that the economic losses from the recent California flooding could range between $5-7 billion. This estimate includes damage to infrastructure, as well as insured losses anticipated to be between $0.5-1.5 billion.
The analysis also sheds light on the increasing frequency and intensity of natural disasters, such as floods, in the U.S. This trend, according to Firas Saleh, Moody’s director of product management, is driving higher insurance premiums, which in turn affect property owners and real estate markets.
Moody's RMS has not only estimated the losses from the California flooding but has also provided similar assessments for other significant events, like Hurricane Debby. The estimate for Hurricane Debby includes losses associated with wind, storm surge, and precipitation-induced flooding, with an estimated U.S. private market insured loss of $1.5 billion.
The strategic investment from Moody's to Fathom, a world-leading global flood modelling business, aims to position Fathom as the world leader in water risk intelligence. Tech-focused investment bank ICON Corporate Finance acted as the exclusive financial adviser to Fathom during this transaction.
The growing risk and economic impact of floods in the U.S. underscore the need for improved risk management and adaptation in flood defenses and real estate planning. Moody's perspective connects to broader physical risk analyses that increasingly inform insurers and investors about vulnerabilities in infrastructure and real estate. This awareness and analysis are crucial for developing mitigation and adaptation strategies, especially in flood-prone areas.
The rising flood risk, compounded by climate-driven factors such as more intense precipitation and sea-level rise, threatens to amplify economic losses and poses growing challenges for flood defense systems and insurance protection gaps, particularly in regions like the U.S.
In conclusion, Moody's analysis underscores the growing risk and economic impact of floods in the U.S., highlighting increased insurance costs and the pressing need for improved risk management and adaptation in flood defenses and real estate planning.
- The analysis from Moody's RMS not only covers the economic losses from the California flooding but also extends to other significant events such as Hurricane Debby, encompassing losses from wind, storm surge, and precipitation-induced flooding.
- The strategic investment by Moody's into Fathom, a global flood modelling business, aims to make Fathom the world leader in water risk intelligence, providing vital data for insurance and investment decision-making.
- The growing risk and economic impact of floods, driven by climate-change factors like more intense precipitation and sea-level rise, pose challenges for flood defense systems and insurance protection gaps, particularly in flood-prone regions within the U.S.
- In light of the increasing frequency and intensity of natural disasters like floods, there is a growing need for improvements in risk management and adaptation in flood defenses, infrastructure development, and real estate planning to minimize economic losses and protect vulnerable areas.
