Connecticut Hurricane Insurance: Fact File

Connecticut Hurricane Insurance: Fact File

MAY 2014

  • Connecticut was one of over a dozen states impacted by Hurricane Sandy in October 2012. Sandy caused $18.75 billion in property losses, excluding flood insurance claims covered by the federal flood insurance program, according to estimates from ISO’s PCS unit as of January 18, 2013. This would make Sandy the third most costly U.S. hurricane, after hurricanes Katrina and Andrew.
  • Sandy resulted in $500 million in private insurance claims in Connecticut. At $9.6 billion and $6.3 billion, respectively, New York and New Jersey suffered the largest private insurance losses by far from Sandy.
  • In September 2011 President Obama declared that a major disaster existed in the state of Connecticut in the wake of August 2011’s Hurricane Irene, the first hurricane to hit the U.S. since Hurricane Ike in 2008. Irene impacted 14 states, causing a total of $4.3 billion in insured property damage, not including flood losses covered under the National Flood Insurance Program (NFIP), according to ISO. The NFIP puts its claims payouts from Irene at $1.3 billion (in all states).
  • The 1938 Great New England Hurricane of 1938 was one of the costliest storms to hit the area. The hurricane, which made landfall as a Category 3 storm during high tide along Long Island, New York and the Connecticut coast, caused extensive damage to those states as well as to Rhode Island and Massachusetts. The storm caused a total of 600 deaths, 1,700 injuries and over $400 million in damages, according to the Massachusetts Executive Office of Public Safety and Security. An analysis by Karen Clark and Company estimates that the storm would have caused $38 billion in insurance damages had it occurred under present conditions.
  • There were 41,507 flood insurance policies in Connecticut in 2012. Standard homeowners policies typically do not cover flood damage. Flood insurance is covered by the National Flood Insurance Program.
  • The insured value of properties in coastal areas of Connecticut totaled $567.8 billion in 2013, accounting for 65 percent of the state’s total insured property exposure, according to an analysis by AIR Worldwide.
  • Connecticut’s FAIR Plan, a residual market plan that acts as a market of last resort for property insurance was established in 1968. The FAIR Plan administers the state’s Coastal Market Assistance Program (C-MAP). C-MAP was created by insurers in the state to assist homeowners living in Connecticut coastal areas who have been unable to obtain insurance.
  • The Connecticut FAIR Plan had $544 million in exposure in fiscal year 2012, down from $594.3 million in 2010. Total policies in the plan amounted to 3,005 in 2012, down from 3,330 in 2010.
  • Population growth from 2000 to 2010 in coastal New England counties ranged from 0.4 percent in Rhode Island, to 3.1 percent in Massachusetts, 4.7 percent in Maine, 4.9 percent in Connecticut and 6.6 percent in New Hampshire, according to the U.S. Census Bureau.

LEADING WRITERS OF COMMERCIAL INSURANCE IN CONNECTICUT BY DIRECT PREMIUMS WRITTEN, 2012 (1)

Rank Group Direct premiums written ($000) Market share
1 Travelers Companies Inc.  $341,923 9.6%
2 Liberty Mutual  303,788 8.5
3 Hartford Financial Services  257,637 7.2
4 American International Group  229,798 6.4
5 Chubb Corp.  185,248 5.2
6 Zurich Insurance Group Ltd.  158,914 4.4
7 CNA Financial Corp.  139,796 3.9
8 W.R. Berkley Corp.  102,789 2.9
9 Nationwide Mutual Group  93,417 2.6
10 ACE Ltd.  92,787 2.6

(1) Before reinsurance transactions.

Source: SNL Financial LC.

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LEADING WRITERS OF HOMEOWNERS INSURANCE IN CONNECTICUT BY DIRECT PREMIUMS WRITTEN, 2012 (1)

Rank Group Direct premiums written ($000) Market share
1 Liberty Mutual $149,294 12.2%
2 Travelers Companies Inc. 132,437 10.9
3 Chubb Corp. 126,589 10.4
4 Allstate Corp.  109,571 9.0
5 USAA Insurance Group 58,867 4.8
6 State Farm Mutual Automobile Insurance 58,742 4.8
7 Nationwide Mutual Group 56,113 4.6
8 Hartford Financial Services 55,610 4.6
9 Amica Mutual Insurance Co. 52,151 4.3
10 MetLife Inc. 40,671 3.3

(1) Before reinsurance transactions.

Source: SNL Financial LC.

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LEADING WRITERS OF PRIVATE PASSENGER AUTO INSURANCE IN CONNECTICUT BY DIRECT PREMIUMS WRITTEN, 2012 (1)

Rank Company/Group Direct premiums written ($000) Market share
1 Berkshire Hathaway Inc.  $349,434 14.3%
2 Allstate Corp.  301,167 12.3
3 Liberty Mutual  280,469 11.5
4 Progressive Corp.  191,235 7.8
5 Travelers Companies Inc.  168,390 6.9
6 Nationwide Mutual Group  123,281 5.0
7 State Farm Mutual Automobile Insurance 120,528 4.9
8 MetLife Inc.  111,813 4.6
9 Hartford Financial Services  105,217 4.3
10 Amica Mutual Insurance Co.  97,567 4.0

(1) Before reinsurance transactions.

Source: SNL Financial LC.

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THE TEN MOST COSTLY HURRICANES IN THE UNITED STATES (1)

($ millions)

        Estimated insured loss (2)
Rank Date Location Hurricane Dollars when
occurred
In 2013
dollars (3)
1 Aug. 25-30, 2005 AL, FL, GA, LA, MS, TN Hurricane Katrina $41,100 $47,622
2 Aug. 24-26, 1992 FL, LA Hurricane Andrew 15,500 23,386
3 Oct. 28-31, 2012 CT, DC, DE, MA, MD, ME, NC, NH,
NJ, NY, OH, PA, RI, VA, VT, WV
Hurricane Sandy 18,750 19,033
4 Sep. 12-14, 2008 AR, IL, IN, KY, LA, MO, OH, PA, TX Hurricane Ike 12,500 13,426
5 Oct. 24, 2005 FL Hurricane Wilma 10,300 11,934
6 Aug. 13-14, 2004 FL, NC, SC Hurricane Charley 7,475 8,939
7 Sep. 15-21, 2004 AL, DE, FL, GA, LA, MD, MS, NC, NJ,
NY, OH, PA, TN, VA, WV
Hurricane Ivan 7,110 8,502
8 Sep. 17-22, 1989 GA, NC, PR, SC, UV, VA Hurricane Hugo 4,195 6,937
9 Sep. 20-26, 2005 AL, AR, FL, LA, MS, TN, TX Hurricane Rita 5,627 6,520
10 Sep. 3-9, 2004 FL, GA, NC, NY, SC Hurricane Frances 4,595 5,495

(1) Includes hurricanes occurring through 2013.                    
(2) Property coverage only. Does not include flood damage covered by the federally adminstered National Flood Insurance Program.                    
(3) Adjusted for inflation through 2013 by ISO using the GDP implicit price deflator.                    
                    
Source: The Property Claim Services® (PCS®) unit of ISO, a Verisk Analytics company.

ESTIMATED VALUE OF INSURED COASTAL PROPERTIES VULNERABLE TO HURRICANES BY STATE, 2012 (1)

($ billions)

Rank State Coastal Total exposure (2) Coastal as a
percent of total
1 New York  $2,923.1 $4,724.2 62%
2 Florida  2,862.3 3,640.1 79
3 Texas  1,175.3 4,580.7 26
4 Massachusetts  849.6 1,561.4 54
5 New Jersey  713.9 2,129.9 34
6 Connecticut  567.8 879.1 65
7 Louisiana  293.5 823.0 36
8 South Carolina  239.3 843.6 28
9 Virginia  182.3 1,761.7 10
10 Maine  164.6 285.5 58
11 North Carolina  163.5 1,795.1 9
12 Alabama  118.2 917.8 13
13 Georgia  106.7 1,932.2 6
14 Delaware  81.9 208.9 39
15 New Hampshire  64.0 278.7 23
16 Mississippi  60.6 468.5 13
17 Rhode Island  58.3 207.5 28
18 Maryland  17.3 1,293.4 1
  All states above  $10,642.2 $28,331.4 38%
  Total U.S.  $10,642.2 $64,624.3 16%

(1) Includes residential and commercial properties, as of December 31, 2012. Ranked by value of insured coastal property.
(2) Total exposure is an estimate of the actual total value of all property in the state that is insured or can be insured, including the full replacement value of structures and their contents, additional living expenses and the time value of business interruption coverage.

Source: AIR Worldwide.

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NATIONAL FLOOD INSURANCE POLICIES IN FORCE, SELECTED STATES, 2012 (1)

State Total SFHA (2) NSFHA (3) Unknown
Connecticut 41,079 26,568 14,427 84
Maine 9,032 4,836 4,195 1
New Hampshire 9,408 6,007 3,395 6
Ohio 42,140 27,074 15,048 18
Rhode Island 16,129 9,674 6,280 175
Vermont 4,326 2,701 1,492 133

(1) As of August, 2012.
(2) Policies for properties in Special Flood Hazard Areas (SFHAs), or floodplains, as designated by FEMA.
(3) Policies for properties not in Special Flood Hazard Areas.

Source: Federal Emergency Management Agency.

Other Resources

I.I.I. Facts & Stats: Flood Insurance

I.I.I. Facts & Stats: Hurricanes

I.I.I. Issues Updates: Catastrophes

I.I.I. Issues Updates: Hurricane and Windstorm Deductibles