IIAT

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The Storms of 2005
Ft. Morgan, Alabama
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The Storms of 2005
Section of I-10 after Katrina
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The Storms of 2005
Gulfport, Mississippi
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The Storms of 2005
Louisiana trawlers
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The Storms of 2005
Few lives were left untouched by disaster along
the Gulf Coast
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Resulting Financial Chaos

• Substantial overnight rate increases
• Insurance company bankruptcies
• Severe reduction in availability of insurance
• Threats to local and state revenues

What would it mean to the Texas economy?
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IIAT Coastal Economy Study

• How important are production and services along
  the coast to the state economy as a whole?
• How does coastal economic activity affect
  specific inland regions of the state?
• What would be the economic impact of a
  Katrina-force storm on the state and regional
  economies?

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Major Coastal Industries
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Impact on Texas Economy
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Coastal Growth Rates
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Texas Coast Economic Engine

• 40 of Texas jobs are tied directly to
  production along the coast
• 44 of states total income is linked to key Gulf
  Coast sectors
• Combined, 39 of the states economic output is
  critically linked to the coastal economy

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Katrina in Texas

• 40 -70 billion in property damage
• 150 - 200 billion in lost business revenue
• Over 1 million insurance claims

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Economic Impact of Storm

• Port of Houston
• 73 billion loss in gross product
• 800,000 jobs
• 61 billion in personal income
• 2.5 billion loss in state revenues

• Average Landfall
• 52 billion loss in gross product
• 600,000 jobs
• 44 billion in personal income
• 1.8 billion loss in state revenues

Plus loss of insurance industry premium taxes of
500 million for years.
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A Call To Action
This study by the Independent Insurance Agents
of Texas demonstrates how important our coast is
to the entire Texas economy. We must be prepared
for the mega-storms predicted over the next
several years that could strike the Texas coast
and threaten the safety and well-being of
residents, commerce and industry not only on the
coast, but also throughout Texas.
Governor Rick Perry
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