Florida Hurricane Insurance: Fact File

AUGUST 2016

  • Florida accounted for 14 percent of all U.S. insured catastrophe losses from 1985 to 2014: $68 billion out of $498.6 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 $24 billion in damage to Florida and Louisiana (in 2016 dollars). (See chart below.) Florida leads the nation in the number of flood policies, according to the National Flood Insurance Program, with about 1.8 million policies in force in 2015. 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 4.2 million, or 27 percent, from 15.6 million in 2000 to 19.8 million in 2015, according to the U.S. Census Bureau. About 98 percent of the total population of Florida lives in one of the coastal counties.
  • 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 $130.2 billion in insured damage in 2016, according to Karen Clark and Co.
  • After its establishment in 2002, when 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 Corp. (CPIC) 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 Corp. 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 $504 million in 2015 down from $795 million in 2014.
  • Citizens was the state's fourth leading homeowners insurer in 2015, with a market share of 5.7, down from 9.1 percent in 2014. It is also the fifth largest commercial insurer, with a 3.8 percent market share, down from 6.6 percent in 2014.
  • Florida Citizens had 701,097 policies with an exposure of $150.5 billion in fiscal year 2015, according to the Property Insurance Plans Service (PIPSO).

 

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

 

Rank Group/company Direct premiums written ($000) Market share
1 Assurant Inc. $1,669,144 8.3%
2 American International Group (AIG) 1,059,114 5.3
3 Chubb Ltd. (2) 980,731 4.9
4 Zurich Insurance Group (3) 892,233 4.4
5 Citizens Property Insurance Corp. 763,849 3.8
6 Liberty Mutual 633,217 3.1
7 Travelers Companies Inc. 609,002 3.0
8 Progressive Corp. 605,576 3.0
9 CNA Financial Corp. 556,026 2.8
10 Nationwide Mutual Group 503,491 2.5

(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 Florida By Direct Premiums Written, 2015 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Universal Insurance Holdings $749,198 8.5%
2 Tower Hill Group 668,420 7.6
3 State Farm Mutual Automobile Insurance 613,803 7.0
4 Citizens Property Insurance Corp. 503,905 5.7
5 Federated National Insurance Co. 407,771 4.6
6 USAA Insurance Group 400,406 4.6
7 HCI Group Inc. 361,786 4.1
8 Heritage Insurance Holdings Inc. 342,176 3.9
9 United Insurance Holdings 276,784 3.2
10 Florida Peninsula Holdings LLC 273,894 3.1

(1) Before reinsurance transactions.

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 Florida By Direct Premiums Written, 2015 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Berkshire Hathaway Inc. $3,350,186 21.2%
2 State Farm Mutual Automobile Insurance 2,629,971 16.7
3 Progressive Corp. 2,223,111 14.1
4 Allstate Corp. 1,816,486 11.5
5 USAA Insurance Group 1,038,087 6.6
6 Liberty Mutual 512,902 3.3
7 Farmers Insurance Group of Companies (2) 450,524 2.9
8 Infinity P&C Corp. 444,809 2.8
9 Travelers Companies Inc. 336,639 2.1
10 Windhaven Insurance Co. 268,185 1.7

(1) Before reinsurance transactions.
(2) 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 Most Costly 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. Does not include 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®, a unit of ISO®, a Verisk Analytics® business.

 

 

Top Three States By Inflation-Adjusted Insured Catastrophe Losses, 1986-2015 (1)

(2015 $ billions)

(1) Adjusted for inflation through 2015 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 unit of ISO®, a Verisk Analytics® business.

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ESTIMATED INSURED LOSSES FOR THE TOP 10 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
  Total, states shown $10,642.2 $28,331.4 38%
  Total, United States $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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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