Gulf Cost Unprepared For Economic Impact Of Another Katrina

Aside from the story about the poor lady who died in a fire because one of her seven cats knocked over a candle (and no, I did not make that up), the biggest news item related to the Texas Gulf Coast this week is about the release of a study that says (surprise, surprise) the Gulf Coast isn’t prepared for the economic impact of another Katrina-sized storm. The study predicted losses of up to $200 billion in production and up to $500 billion in lost income.

The study was evidently commissioned by the Independent Insurance Agents of Texas (IIAT), a group whose studies I would normally discount as pro-tort reform “the sky is falling” scare tactics. However, this one was done by economist M. Ray Perryman of Waco. Therefore, set it in stone because it’s probably pretty darned on the money. (Hey, the guy was a Nobel Prize nominee, for goodness sakes!)

The study [Results;Executive summary; Appendices - including methodology; Press release; Media kit] was evidently the first of its kind. I haven’t read through the reports yet, but I will be doing so soon.

In the meantime, the MSM actually did a decent job of covering this, here and here (as well as a dozen other places). Insurance Journal has a write up, too.