Florida Hurricane Insurance: Fact File

Florida Hurricane Insurance: Fact File

JULY 2014

  • Florida accounted for 14 percent of all U.S. insured catastrophe losses from 1983 to 2012: $66.7 billion out of $467.5 billion, based on data from the PCS division of ISO. (Adjusted for inflation by ISO using the GDP implicit price deflator.)
  • Seven of the 10 costliest hurricanes in U.S. history have impacted Florida. Six of these storms occurred within just two years: 2004 and 2005. (See chart below.)
  • The costliest hurricane, based on insured property losses to Florida, was 1992’s Hurricane Andrew. It caused $23.3 billion in damage to Florida and Louisiana in 1992 (in 2012 dollars). (See chart below.)
  • Florida leads the nation in the number of flood policies, according to the National Flood Insurance Program, with about 2.1 million policies in force in 2012. Standard homeowners policies typically do not cover flood damage. Flood insurance is covered by the National Flood Insurance Program.
  • The number of people living in coastal areas in Florida increased by 2.8 million people, or 17.7 percent, from 15.6 million in 2000 to 18.3 million in 2010, according to the U.S. Census Bureau.
  • The insured value of properties in coastal areas of Florida totaled $2.9 trillion in 2013, accounting for 79 percent of the state’s total insured property exposure, according to an analysis by AIR Worldwide.
  • Given the growth in the number and value of insured property, a repeat of the hurricane that devastated Miami in 1926 would result in approximately $125 billion in insured damage today, according to Karen Clark and Company.
  • Since its establishment in 2002, after the state passed legislation combining two separate high risk insurance pools known as the Florida Windstorm Underwriting Association and the Florida Residential Property & Casualty Joint Underwriting Association, Citizens Property Insurance Corporation (CPIC) has experienced exponential growth. As a result Florida Citizens has evolved from a market of last resort to the state’s largest property insurer.
  • Florida Citizens Property Insurance Corporation provides multiperil and wind-only insurance coverage to Florida homeowners, commercial residential and commercial business property owners.
  • Direct homeowners insurance premiums in Florida written by Citizens was $1.6 billion in 2012, about the same as in 2011.
  • Citizens was the state's leading homeowners insurer in 2012, with a market share of 19.5 percent. It is also the leading commercial insurer, with an 8.9 percent market share in 2012.
  • Florida Citizens had 1,562,117 policies with an exposure of $429 billion in fiscal year 2012, according to the Property Insurance Plans Service (PIPSO).

 

LEADING WRITERS OF COMMERCIAL INSURANCE IN FLORIDA BY DIRECT PREMIUMS WRITTEN, 2013 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Citizens Property Insurance Corp. $1,489,302 8.2%
2 Assurant Inc. 923,993 5.1
3 American International Group 919,766 5.1
4 Zurich Insurance Group 812,469 4.5
5 Travelers Companies Inc. 660,917 3.6
6 Liberty Mutual 641,590 3.5
7 ACE Ltd. 548,095 3.0
8 CNA Financial Corp. 521,236 2.9
9 American Financial Group Inc. 472,511 2.6
10 Nationwide Mutual Group 441,233 2.4

(1) Before reinsurance transactions.

Source: SNL Financial LC.

View Archived Tables

 

 

LEADING WRITERS OF HOMEOWNERS INSURANCE IN FLORIDA BY DIRECT PREMIUMS WRITTEN, 2013 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Citizens Property Insurance Corp. $1,272,336 14.5%
2 Universal Insurance Holdings 695,951 7.9
3 State Farm Mutual Automobile Insurance 646,851 7.4
4 Tower Hill Group 607,700 6.9
5 USAA Insurance Group 427,704 4.9
6 HCI Group, Inc. 311,550 3.6
7 Florida Peninsula Holdings LLC 310,353 3.5
8 United P&C Insurance Co. 263,178 3.0
9 St. Johns Insurance Co. 255,852 2.9
10 ARX Holding Corp. 249,888 2.9

(1) Before reinsurance transactions.

Source: SNL Financial LC.

View Archived Tables

 

 

LEADING WRITERS OF PRIVATE PASSENGER AUTO INSURANCE IN FLORIDA BY DIRECT PREMIUMS WRITTEN, 2013 (1)

Rank Group/company Direct premiums written ($000) Market share
1 Berkshire Hathaway Inc. $2,707,730 19.2%
2 State Farm Mutual Automobile Insurance 2,410,915 17.1
3 Progressive Corp. 1,840,709 13.0
4 Allstate Corp. 1,671,344 11.8
5 USAA Insurance Group 894,943 6.3
6 Liberty Mutual 530,038 3.8
7 Farmers Insurance Group of Cos. 466,711 3.3
8 Infinity P&C Corp. 433,577 3.1
9 Travelers Companies Inc. 316,545 2.2
10 Nationwide Mutual Group 248,865 1.8

(1) Before reinsurance transactions.

Source: SNL Financial LC.

View Archived Tables

 

 

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.

 

 

TOP THREE STATES BY INFLATION-ADJUSTED INSURED CATASTROPHE LOSSES, 1983-2012 (1)

(2012 $ billions)

(1) Adjusted for inflation through 2012 by ISO using the GDP implicit price deflator. Excludes catastrophes causing direct losses less than $25 million in 1997 dollars. Excludes flood damage covered by the federally administered National Flood Insurance Program.
(2) Includes the other 47 states plus Washington, D.C., Puerto Rico, and the U.S. Virgin Islands.

Source: Property Claim Services (PCS), a division of Verisk Analytics.

View Archived Graphs

 

 

ESTIMATED INSURED LOSSES FOR THE TOP TEN HISTORICAL HURRICANES BASED ON CURRENT EXPOSURES (1)

($ billions)

Rank Date Event Category Insured loss
(current exposures)
1 Sep. 18, 1926 Miami Hurricane 4 $125
2 Aug. 24, 1992 Hurricane Andrew 5 57
3 Sep. 17, 1947 1947 Fort Lauderdale Hurricane 4 53
4 Sep. 17, 1928 Great Okeechobee Hurricane 5 51
5 Aug. 29, 2005 Hurricane Katrina 3 (2) 45
6 Sep. 9, 1965 Hurricane Betsy 3 45
7 Sep. 9, 1900 Galveston Hurricane of 1900 4 41
8 Sep. 10, 1960 Hurricane Donna 4 35
9 Sep. 21, 1938 The Great New England Hurricane 3 33
10 Sep. 15, 1950 Hurricane Easy 3 23

(1) Modeled loss to property, contents, and business interruption and additional living expenses for residential, mobile home, commercial, and auto exposures as of December 31, 2011. Losses include demand surge.
(2) Refers to Katrina’s second landfall in Louisiana.

Source: AIR Worldwide Corporation.

 

 

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.

View Archived Tables

 

Other Resources

FEMA Regional Flood Fact Sheet: http://www.floodsmart.gov/floodsmart/pdfs/Region_4_Hurricane_fact_sheet_FINAL_for_web.pdf

Florida Citizens: Financial Statements

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 (See sections on Florida.)

I.I.I. Issues Updates: Residual Markets (See sections on Florida.)

White Paper: Hurricane Andrew and Insurance: The Enduring Impact of an Historic Storm