The Hurricane Damage Index (HurDI)

Statistical hurricane risk assessments make long-term multi-decadal stationary climate assumptions, but there is large hurricane variability in the risk. It would be useful to also better estimate the “current” risk. The hurricane damage index (HurDI), is proposed as a measure of the underlying non-stationary risk. The HurDI is defined as the normalised annual average damage calculated with a stochastic wind only model, a single damage function, and uniform exposure across the continental U.S. The stochastic model is climate conditioned by weighting the historical basin hurricane counts, potential intensity, and tracks. The weights are chosen to give the best persistence forecast for each parameter for the next five years. There has been a substantial increase of the hurricane risk as measured by the HurDI. In 2024, the index was at a record high of 188, with a reference value of 100 in 1989. The HurDI is a dynamic view of risk based on the hurricane variability only and can be compared to U.S. property catastrophe reinsurance rates. There are periods of varying difference between the rates and the HurDI reflecting the volatile market cycles.