Global flood risk affects one-third of population according to Moody's report

Recent hurricanes Helene and Milton have resulted in significant flooding across multiple states, contributing to a growing global concern about elevated flood risks. A report by Moody's highlights that changing weather patterns and population shifts are exposing 3 in 10 people worldwide to substantial flood risk. The report identifies Southeast Asia and the Middle East as regions with the highest flood risk over various time periods, while North America faces relatively lower risk.

Moody’s analysis focused on populations rather than properties at risk. "North America’s population exposed to 10-year coastal flood events is remarkably low," the report notes, though it warns that high-value properties in certain areas remain vulnerable.

The Swiss Re Institute reports that severe thunderstorms, primarily in the U.S., accounted for 70% of global insured losses in early 2024, totaling $42 billion. Jérôme Jean Haegeli from Swiss Re emphasizes that factors like inflation and economic development are increasing exposure to such losses, necessitating investment in protective measures.

Swiss Re also notes above-average losses due to floods in places like the UAE, Germany, and Brazil. Heavy rainfall, urban growth, and inadequate drainage systems exacerbate these impacts.

In the U.S., insurance costs are affected by severe weather beyond just flooding. Insurify's analysis indicates states like Florida, Louisiana, and Oklahoma face high home insurance rates due to weather-related losses. Rising car insurance rates in North Carolina are linked to increased flood damage.

"As we experience tornadoes, hail, and flooding in places where they weren’t necessarily a major threat before," says Betsy Stella from Insurify, "the increased frequency and severity of these events will need to be considered in pricing."