In 2005, Hurricane Katrina struck the Gulf Coast, causing massive flooding and widespread property damage. More than 1,800 people were killed in the storm and 1.5 million were displaced. Economic losses exceeded $225 billion, while insured losses came to $105 billion (in 2024 dollars), making it the most costly natural catastrophe in U.S. history. New Orleans and the surrounding areas have taken many steps to improve their resilience in the wake of Katrina, but two decades later, the risk remains high.
In fact, according to a report by the Swiss Re Institute, a repeat of Katrina today would still result in nearly $100 billion in insured losses. While improved flood defenses, stronger building and zoning codes, and declining population and economic output in the region have contributed to lower insurance exposures, these factors have been largely offset by inflation in housing, construction and repair costs.
Today, the legacy of Katrina continues to inform disaster preparedness efforts. “We have made real progress in mitigating risk in the region following lessons learned that highlighted the need for stronger levees, better building codes and smarter land use,” said Mohit Pande, chief property underwriting officer at Swiss Re. “Efforts like these should be applauded, but they must accelerate to continue to build our resilience to extreme weather events. If we want to keep disaster risks insurable in a changing world, we need to invest in mitigation before the storm, not just recovery after.”