Connecticut Hurricane Insurance: Fact File

AUGUST 2016

  • Connecticut was one of over a dozen states impacted by Hurricane Sandy in October 2012. Sandy caused $18.75 billion in U.S. property losses, excluding flood insurance claims covered by the federal flood insurance program, according to estimates from ISO’s PCS unit. 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 40,660 flood insurance policies in Connecticut in 2015. Standard homeowner’s 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 $487 million in exposure in fiscal year 2015, down from $533 million in 2014. Total policies in the plan amounted to 2,618 in 2015, down from 2,882 in 2014.
  • Population growth from 2010 to 2015 in coastal New England counties ranged from 3.6 percent in Massachusetts to 1.6 percent in New Hampshire, 0.3 percent in Rhode Island and Connecticut, and 0.4 percent in Maine, according to the U.S. Census Bureau.

 

Top 10 Writers Of Commercial Insurance In Connecticut By Direct Premiums Written, 2015 (1)

Rank Group/company Direct premiums written ($000) Market share
1 Chubb Ltd. (2) $358,433 8.7%
2 Travelers Companies Inc. 343,462 8.4
3 Hartford Financial Services 273,445 6.7
4 Liberty Mutual 250,099 6.1
5 American International Group (AIG) 250,089 6.1
6 Zurich Insurance Group (3) 172,673 4.2
7 CNA Financial Corp. 156,565 3.8
8 W. R. Berkley Corp. 143,403 3.5
9 Nationwide Mutual Group 122,973 3.0
10 Tokio Marine Group 106,975 2.6

(1) Before reinsurance transactions.
(2) Chubb Ltd. data reflects the 2015 merger with Ace Ltd.
(3) Data for Farmers Insurance Group of Companies and Zurich Financial Group (which owns Farmers' management company) are reported separately by S&P Global Market Intelligence.

Source: NAIC data, sourced from S&P Global Market Intelligence, Insurance Information Institute..

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Top 10 Writers Of Homeowners Insurance In Connecticut By Direct Premiums Written, 2015 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Liberty Mutual $171,952 12.2%
2 Chubb Ltd. (2) 161,773 11.5
3 Travelers Companies Inc. 134,350 9.5
4 Allstate Corp. 103,590 7.4
5 State Farm Mutual Automobile Insurance 73,026 5.2
6 USAA Insurance Group 71,659 5.1
7 Amica Mutual Insurance Co. 65,995 4.7
8 Nationwide Mutual Group 65,221 4.6
9 Hartford Financial Services 58,839 4.2
10 MetLife Inc. 48,272 3.4

(1) Before reinsurance transactions.
(2) Chubb Ltd. data reflects the 2015 merger with Ace Ltd.

Source: NAIC data, sourced from S&P Global Market Intelligence, Insurance Information Institute.

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Top 10 Writers Of Private Passenger Auto Insurance In Connecticut By Direct Premiums Written, 2015 (1)

Rank Group/company Direct premiums written ($000) Market share
1 Berkshire Hathaway Inc. $452,844 17.0%
2 Allstate Corp. 327,175 12.3
3 Liberty Mutual 309,160 11.6
4 Progressive Corp. 207,738 7.8
5 Travelers Companies Inc. 176,100 6.6
6 State Farm Mutual Automobile Insurance 153,303 5.7
7 Nationwide Mutual Group 124,049 4.6
8 Hartford Financial Services 113,799 4.3
9 USAA Insurance Group 110,596 4.1
10 Amica Mutual Insurance Co. 103,963 3.9

(1) Before reinsurance transactions.

Source: NAIC data, sourced from S&P Global Market Intelligence, Insurance Information Institute.

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Top 10 Costliest Hurricanes In The United States (1)

($ millions)

        Estimated insured loss (2)
Rank Date Location Hurricane Dollars when
occurred
In 2015
dollars (3)
1 Aug. 25-30, 2005 AL, FL, GA, LA, MS, TN Hurricane Katrina $41,100 $49,047
2 Aug. 24-26, 1992 FL, LA Hurricane Andrew 15,500 24,111
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 19,563
4 Sep. 12-14, 2008 AR, IL, IN, KY, LA, MO, OH, PA, TX Hurricane Ike 12,500 13,826
5 Oct. 24, 2005 FL Hurricane Wilma 10,300 12,292
6 Aug. 13-14, 2004 FL, NC, SC Hurricane Charley 7,475 9,207
7 Sep. 15-21, 2004 AL, DE, FL, GA, LA, MD, MS, NC,
NJ, NY, OH, PA, TN, VA, WV
Hurricane Ivan 7,110 8,758
8 Sep. 17-22, 1989 GA, NC, PR, SC, UV, VA Hurricane Hugo 4,195 7,152
9 Sep. 20-26, 2005 AL, AR, FL, LA, MS, TN, TX Hurricane Rita 5,627 6,715
10 Sep. 3-9, 2004 FL, GA, NC, NY, SC Hurricane Frances 4,595 5,660

(1) Includes hurricanes occurring through 2015.
(2) Property coverage only. Excludes flood damage covered by the federally administered National Flood Insurance Program.
(3) Adjusted for inflation through 2015 by ISO using the GDP implicit price deflator.

Source: Property Claim Services (PCS®), a Verisk Analytics® business.

 

 

Estimated Value Of Insured Coastal Properties Vulnerable To Hurricanes By State, 2012 (1)

($ billions)

Rank State Commercial Residential Total
coastal
Total
exposure (2)
Coastal as a
percent of total
1 New York $2,105.6 $817.5 $2,923.1 $4,724.2 62%
2 Florida 1,359.9 1,502.4 2862.3 3640.1 79
3 Texas 653.8 521.5 1,175.3 4,580.7 26
4 Massachusetts 456.0 393.6 849.6 1,561.4 54
5 New Jersey 374.6 339.3 713.9 2,129.9 34
6 Connecticut 271.7 296.1 567.8 879.1 65
7 Louisiana 153.5 140.0 293.5 823.0 36
8 South Carolina 129.9 109.4 239.3 843.6 28
9 Virginia 95.2 87.1 182.3 1,761.7 10
10 Maine 73.3 91.3 164.6 285.5 58
11 North Carolina 65.8 97.7 163.5 1,795.1 9
12 Alabama 61.6 56.6 118.2 917.8 13
13 Georgia 57.4 49.3 106.7 1,932.2 6
14 Delaware 31.8 50.1 81.9 208.9 39
15 New Hampshire 28.5 35.5 64.0 278.7 23
16 Mississippi 29.6 31.0 60.6 468.5 13
17 Rhode Island 22.6 35.7 58.3 207.5 28
18 Maryland 8.7 8.6 17.3 1,293.4 1
  Total, states shown $5,979.5 $4,662.7 $10,642.2 $28,331.4 38%
  Total, United States 5,979.5 4,662.7 $10,642.2 $64,624.3 16%

(1) Includes residential and commercial Gulf and East Coast properties, as of December 31, 2012. Ranked by value of total 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