A recent Swiss Re Institute study found that natural habitats can significantly reduce coastal flood losses. Researchers examined more than a decade of National Flood Insurance Program claims data cross-referenced with geospatial information about U.S. coastal areas. They found that areas with a greater presence of natural protective barriers—such as coral reefs, mangrove swamps, salt marshes and seagrass meadows—experienced a 42% to 65% reduction in insured flood loss frequency from lower-severity storms as compared to areas with less coastal protection.
In addition, researchers found that 200 miles of coral reefs provide the United States with the equivalent annual value of $5.3 billion in flood protection. In specific cases, mangrove swamps saved an estimated $1.5 billion in flood damage during Hurricane Irma, and coastal wetlands prevented $625 million in flood surge damage during Hurricane Sandy. Conversely, coral reef degradation could result in an estimated $385 million annual increase in coastal flood damages in Florida alone.
The report recommended that the insurance industry support the preservation of these protective ecosystems. “Insurers can integrate the benefits of nature into risk assessments, deploy solutions to indemnify coastal habitats in the face of natural disasters, and guide investments into nature-based solutions,” said Gillian Rutherford, head of sustainability markets at Swiss Re. “Such forms of coastal protection can contribute to more resilient properties and communities.”