According to the National Oceanic and Atmospheric Administration (NOAA), the year 2024 witnessed 27 individual weather and climate disasters, each causing damages exceeding $1 billion. This number closely trails the record 28 events recorded in 2023, highlighting a growing trend in the severity and frequency of these disasters. These events resulted in at least 568 direct or indirect fatalities, marking the eighth-highest death toll among billion-dollar disasters over the past 45 years (1980-2024). The staggering cost associated with these catastrophes rose to approximately $182.7 billion.
Such alarming statistics serve as a wake-up call, urging us to recognize the increasing volatility of our climate. The U.S. Global Change Research Program has found a remarkable uptick in the intensity of heavy rainfall events across the nation since 1958. In particular, large single-day precipitation events have surged significantly, with areas like New England witnessing a staggering 59% increase, while the Pacific Northwest recorded a modest 2% rise.
Alarmingly, Hawaii has seen a 23% decrease in these intense rainfalls, illustrating the uneven nature of climate change effects.
NASA reports a 10.1 cm (approximately 4 inches) rise in sea levels since 1993, which may seem minuscule but carries significant consequences. Coastal erosion, heightened flooding in low-lying areas, and an increased frequency of storm surges all stem from this gradual but relentless sea-level rise.
The Biggert-Waters Flood Insurance Reform Act of 2012 sought to enhance accessibility to flood insurance by recognizing private flood insurance alongside NFIP coverage. However, despite this legislative support and increasing risks, gaining traction within the flood insurance market has proven challenging. Neither the National Flood Insurance Program (NFIP) nor private flood insurance have made progress in closing the flood insurance gap. Homeowners often remain unaware of the available options or hesitate to invest in coverage due to a lack of immediate flooding experience.
Much has changed since the National Flood Insurance Program (NFIP) was established in 1968. The NFIP and private flood insurance must adapt to these evolving risks and realities. As weather patterns continue to change, the nation’s flood insurance strategies must evolve to protect homeowners and communities. Ultimately, as the NFIP and private insurance confront these evolving challenges, there exists an opportunity to foster greater awareness and understanding of flood risks among homeowners.
Disclaimer: This blog post was generated by artificial intelligence using Solstice Innovations’ proprietary LinkedIn article, “The State of the Flood Insurance Industry,” as its only source. It was then reviewed and edited by the article’s original author.
References:
Jon Umstead. 2025. The State of the Flood Insurance Industry. Solstice Innovations
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