New Orleans faces a significantly increased storm surge threat this century, according to a recently published report from a risk modeling firm.
The report from Risk Management Solutions, based in Newark, Calif., asserts that New Orleans is sinking at geologically rapid rates. Along with the rise in the global sea level and the increase in Atlantic basin storm activity, the city's future appears bleak.
The report considers the role of insurers, government and planning to provide physical and economic protection for businesses and residents.
RMS Chief Executive Officer Hemant Shah said the devastation of the Gulf coastal cities in 2005 can be seen as a "parable of our time."
"These problems are shared by many cities along the U.S. Atlantic and Gulf Coast states, as well as other coastal cities around the world that face similar risks due to rising sea levels and increasing storm intensity associated with climate change," Mr. Shah said.
The report illustrates how the risk analysis involved in assessing insurability can be a useful tool for policymakers concerned with determining acceptable levels of risk.
In addition, the use of catastrophe models allows the individual components of risk–such as hazard, exposure and vulnerability–to be separated so that the uncertainties are explored along with alternative strategies for risk mitigation.
RMS Chief Research Officer Robert Muir-Wood said that New Orleans has the opportunity to pioneer solutions that maintain the viability of the city while at the same time ensuring that risk to the city's citizens and businesses is maintained below acceptable thresholds.
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