New England Hurricane Insurance: Fact File

AUGUST 2016

The vast majority of the 40 tropical systems that have impacted the New England region over the past century have struck during the months of August and September, according to the Massachusetts Executive Office of Public Safety and Security (EOPSS).

  • Several New England states suffered property damage from 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.  Sandy was the third most costly U.S. hurricane, after hurricanes Katrina and Andrew.
  • Private insurers paid claims for property damage caused by Hurricane Sandy in Connecticut ($510 million); Massachusetts ($210 million); Rhode Island ($103 million); New Hampshire ($55 million); Maine ($37 million); and Vermont ($13 million).
  • The New England states were heavily impacted by Hurricane Irene in August, 2011. Irene impacted a total of 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 Great New England Hurricane of 1938 was one of the costliest storms to hit the area. This Category 5 hurricane, which is also known as “The Long Island Express”, was first detected in the Tropical Atlantic. 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 600 deaths, 1,700 injuries and over $400 million in damages, according to EOPSS. An analysis by AIR Worldwide estimates that the storm would have caused $33 billion in insurance damages had it occurred under present conditions.
  • Another major storm to hit the region, 1960’s Hurricane Donna, hit Florida, the Mid-Atlantic States and New England, causing a total of $500 million in damages. Other notable hurricanes include  Hurricane Gloria, which pummeled the New England Coast in 1985 causing $900 million in damages, and 1991’s Hurricane Bob, which caused $1 billion in damages in Southern New England, according to EOPOSS.
  • Standard homeowners policies typically do not cover flood damage. Flood insurance is covered by the National Flood Insurance Program. The number of flood insurance policies in coastal New England states in 2015 ranged from 4,096 in Vermont to 63,714 in Massachusetts. Connecticut had 40,660, Rhode Island had 15,103, and New Hampshire had 8,862.
  • 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.
  • Exposure to loss under the Massachusetts Property Underwriting Insurance Association (MPIUA) increased to $80.8 billion in fiscal year 2015 from $4.1 billion in 1990. The MPIUA’s policy count surged to 216,142 policies (habitational and commercial) in fiscal year 2014 from 49,628 in 1990.
  • Rhode Island has a residual market plan that acts as markets of last resort for residential and commercial property insurance in the state. The Rhode Island Joint Reinsurance Association (RIJRA) was formed in 1968. The RIJRA’s policy count totaled 17,628 in fiscal year 2015, up from 6,777 in 1990. Exposure to loss under the plan increased to $4.4 billion in fiscal year 2015 from $409 million in 1990.
  • The Connecticut FAIR Plan was also 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 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.

 

LEADING WRITERS OF COMMERCIAL INSURANCE IN NEW ENGLAND BY DIRECT PREMIUMS WRITTEN, 2014 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Travelers Companies Inc. $1,125,839 7.8%
2 Liberty Mutual 976,887 6.8
3 American International Group (AIG) 891,278 6.2
4 W. R. Berkley Corp. 614,424 4.3
5 Hartford Financial Services 581,123 4.0
6 Chubb Corp. 567,429 3.9
7 Zurich Insurance Group (2) 484,040 3.3
8 CNA Financial Corp. 464,883 3.2
9 Hanover Insurance Group Inc. 368,076 2.5
10 ACE Ltd. 344,346 2.4

(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 SNL Financial.

Source: SNL Financial LC.

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LEADING WRITERS OF HOMEOWNERS INSURANCE IN NEW ENGLAND BY DIRECT PREMIUMS WRITTEN, 2014 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Liberty Mutual $551,951 11.6%
2 Chubb Corp. 305,838 6.5
3 MAPFRE 297,569 6.3
4 Travelers Companies Inc. 277,278 5.8
5 Allstate Corp. 231,800 4.9
6 Amica Mutual Insurance Co. 209,102 4.4
7 USAA Insurance Group 206,363 4.4
8 Andover Companies 181,402 3.8
9 State Farm Mutual Automobile Insurance 173,770 3.7
10 Arbella Mutual Insurance Co. 170,098 3.6

(1) Before reinsurance transactions.

Source: SNL Financial LC.

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LEADING WRITERS OF PRIVATE PASSENGER AUTO INSURANCE IN NEW ENGLAND BY DIRECT PREMIUMS WRITTEN, 2014 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 MAPFRE $1,186,978 12.5%
2 Liberty Mutual 1,137,058 11.9
3 Berkshire Hathaway Inc. 986,982 10.4
4 Progressive Corp. 718,634 7.5
5 Allstate Corp.  683,042 7.2
6 Safety Insurance Group Inc. 472,553 5.0
7 MetLife Inc.  425,553 4.5
8 Arbella Mutual Insurance Co. 418,467 4.4
9 State Farm Mutual Automobile Insurance 368,577 3.9
10 Amica Mutual Insurance Co. 366,336 3.8

(1) Before reinsurance transactions.

Source: SNL Financial LC.

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Top 10 States, By Population Change In Coastal Counties, 1960-2010

  By number change    By percent change 
Rank State Number change Rank State Percent change
1 California 13,130,000 1 Florida 270.1%
2 Florida 10,360,000 2 Alaska 239.8
3 Texas 3,732,000 3 New Hampshire 198.0
4 Washington 2,578,000 4 Texas 161.9
5 Virginia 1,903,000 5 Virginia 150.8
6 New York 1,400,000 6 Washington 144.4
7 New Jersey 1,275,000 7 South Carolina 125.1
8 Maryland 938,000 8 Hawaii 115.2
9 Massachusetts 826,000 9 North Carolina 114.4
10 Hawaii 728,000 10 California 107.2

Source: U.S. Department of Commerce, Census Bureau (www.census.gov/dataviz/visualizations/039/508.php).

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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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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 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.

 

Other Resources

I.I.I. Facts & Stats: Hurricanes

I.I.I. Issues Updates: Catastrophes

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