Mississippi Hurricane Insurance: Fact File

AUGUST 2016

  • The costliest Mississippi hurricane in recent years was Hurricane Katrina, which caused nearly $14 billion in insured losses in the state in 2005 (about $17.1 billion in 2015 dollars). These loss statistics do not include flood damage covered under the federal government’s National Flood Insurance Program (NFIP). Standard homeowners policies typically do not cover flood damage. Hurricane Katrina was the costliest hurricane to hit the U.S. (See chart below.)
  • Hurricane Katrina also resulted in $2.5 billion in flood insurance losses in Mississippi paid by the NFIP.
  • There were 66,442 flood insurance policies covered under the NFIP in Mississippi in 2015.
  • Hurricane Katrina was also among the deadliest in Mississippi history, with more than 250 lives lost in the state alone.
  • The number of people living in coastal areas in Mississippi increased from 2010 to 2015 by 18,713 people or 2.9 percent to 648,360, according to the U.S. Census Bureau.
  • The insured value of properties in coastal areas of Mississippi totaled $60.6 billion in 2013, accounting for 13 percent of the state’s total insured property exposure, according to an analysis by AIR Worldwide.
  • As a result of the devastating impact of Hurricane Katrina, between 2004 and 2007 the total insured value of coastal properties in Mississippi grew at the second lowest compound average annual rate of all coastal states (5 percent). In 2007 Mississippi ranked 17th among states in terms of the total value of insured coastal property.
  • The Mississippi Windstorm Underwriting Association (MWUA) was established by the state legislature in 1987 as a market of last resort to provide windstorm and hail insurance in the coastal areas of Mississippi. MWUA provides windstorm and hail coverage only in the coastal counties of George, Hancock, Harrison, Jackson, Pearl River, and Stone.
  • MWUA policies contain a hurricane deductible of 2 percent of the insured value of the home. The hurricane deductible is triggered by windstorm losses resulting from a named storm as declared by the National Hurricane Center of the National Weather Service and remains in effect until a tropical storm warning is over.

 

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

 

Rank Group/company Direct premiums written ($000) Market share
1 Travelers Companies Inc. $165,018 7.5%
2 Zurich Insurance Group (2) 111,979 5.1
3 Liberty Mutual 107,828 4.9
4 American International Group (AIG) 94,335 4.3
5 Chubb Ltd. (3) 84,955 3.9
6 Nationwide Mutual Group 78,435 3.6
7 CNA Financial Corp. 73,863 3.4
8 W. R. Berkley Corp. 73,219 3.3
9 CGB Insurance Co. 65,310 3.0
10 Southern Farm Bureau Casualty Insurance Group 55,416 2.5

(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.
(3) 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 Homeowners Insurance In Mississippi By Direct Premiums Written, 2015 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $263,856 27.5%
2 Southern Farm Bureau Casualty Insurance Group 163,247 17.0
3 Allstate Corp. 95,494 10.0
4 Nationwide Mutual Group 72,824 7.6
5 Liberty Mutual 62,277 6.5
6 Farmers Insurance Group of Companies (2) 39,521 4.1
7 USAA Insurance Group 38,661 4.0
8 Alfa Mutual Group 28,353 3.0
9 Shelter Mutual Insurance Co. 25,196 2.6
10 MetLife Inc. 22,496 2.3

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

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $445,315 26.8%
2 Southern Farm Bureau Casualty Insurance Group 198,115 11.9
3 Allstate Corp. 157,846 9.5
4 Progressive Corp. 148,063 8.9
5 Nationwide Mutual Group 98,968 5.9
6 Berkshire Hathaway Inc. 94,726 5.7
7 Liberty Mutual 79,595 4.8
8 USAA Insurance Group 77,117 4.6
9 Alfa Mutual Group 60,618 3.6
10 Shelter Mutual Insurance Co. 46,892 2.8

(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 2016
dollars (3)
1 Aug. 25-30, 2005 AL, FL, GA, LA, MS, TN Hurricane Katrina $41,100 $49,793
2 Aug. 24-26, 1992 FL, LA Hurricane Andrew 15,500 24,478
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 19,860
4 Sep. 12-14, 2008 AR, IL, IN, KY, LA, MO, OH, PA, TX Hurricane Ike 12,500 14,036
5 Oct. 24, 2005 FL Hurricane Wilma 10,300 12,479
6 Aug. 13-14, 2004 FL, NC, SC Hurricane Charley 7,475 9,348
7 Sep. 15-21, 2004 AL, DE, FL, GA, LA, MD, MS, NC, NJ, NY, OH, PA, TN, VA, WV Hurricane Ivan 7,110 8,891
8 Sep. 17-22, 1989 GA, NC, PR, SC, UV, VA Hurricane Hugo 4,195 7,260
9 Sep. 20-26, 2005 AL, AR, FL, LA, MS, TN, TX Hurricane Rita 5,627 6,817
10 Sep. 3-9, 2004 FL, GA, NC, NY, SC Hurricane Frances 4,595 5,746

(1) Includes hurricanes occurring through 2016.
(2) Property coverage only. Excludes flood damage covered by the federally administered National Flood Insurance Program.
(3) Adjusted for inflation through 2016 by ISO using the GDP implicit price deflator.

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

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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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Other Resources

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

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

I.I.I. Facts & Stats: Hurricanes

 

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

Mississippi Windstorm Underwriting Association Website