New York Hurricane Insurance: Fact File

AUGUST 2016

  • New York was one of over a dozen states impacted by Hurricane Sandy in October 2012. Sandy caused $18.75 billion in U.S. insured 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.
  • At $9.6 billion, New York suffered the largest private insurance losses from Sandy, followed by New Jersey with $6.3 billion, according to ISO.
  • New York was one of 14 states 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).
  • Three of the costliest hurricanes to hit the U.S., based on insured property losses, caused damage in New York: Hurricane Ivan and Hurricane Frances, both in 2004, and Hurricane Sandy in 2012. (See chart below.)
  • 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 $35 billion in insurance damages had it occurred under present conditions.
  • There were 188,202 flood insurance policies in New York in 2015. Standard homeowners 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 New York totaled $2.9 trillion in 2013, accounting for 62 percent of the state’s total insured property exposure, according to an analysis by AIR Worldwide.
  • The population in New York’s coastal areas increased by 2.5 percent from 17.6 million in 2010 to 18.0 million in 2015, according to the U.S. Census Bureau, which also reports that two of the most intense U.S. hurricanes since 1960 affected coastal counties in New York: Hurricane Donna in 1960 and Hurricane Sandy in 2012.
  • New York has a residual market plan that acts as a market of last resort for residential and commercial property insurance in the state.
  • The New York Property Insurance Underwriting Association (NYPIUA) was formed in 1968 after passage by Congress of the Housing and Urban Development Act of 1968. This legislation made federal riot reinsurance available to those states that instituted such property insurance pools.
  • Exposure to loss under NYPIUA more than doubled to $13.4 billion in fiscal year 2015 from $5.6 billion in 1990, even as the plan’s policy count went down. The plan’s total policy count (habitational and commercial) was 51,297 in fiscal year 2015 compared with 73,805 total policies in 1990.

 

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

Rank Group/company Direct premiums written ($000) Market share
1 State Insurance Fund Workers' Comp $2,437,325 9.5%
2 Chubb Ltd. (2)                                1,770,230         6.9
3 American International Group (AIG)                                1,660,265         6.5
4 Travelers Companies Inc.                                1,481,930         5.8
5 Zurich Insurance Group (3)                                   942,361         3.7
6 Liberty Mutual                                   928,103         3.6
7 Nationwide Mutual Group                                   923,716         3.6
8 AmTrust Financial Services                                   870,671         3.4
9 Hartford Financial Services                                   780,586         3.0
10 CNA Financial Corp.                                   693,674         2.7

(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 New York By Direct Premiums Written, 2015 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $760,895 14.6%
2 Allstate Corp. 748,589 14.3
3 Chubb Ltd. (2) 530,269 10.2
4 Travelers Companies Inc. 481,335 9.2
5 Liberty Mutual 436,097 8.4
6 Integon National Group 190,449 3.6
7 NYCM Insurance Group 174,296 3.3
8 American International Group (AIG) 149,974 2.9
9 Nationwide Mutual Group 147,742 2.8
10 NBIC Holdings Inc. 146,229 2.8

(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 New York By Direct Premiums Written, 2015 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Berkshire Hathaway Inc. $3,680,016 30.8%
2 Allstate Corp. 1,767,300 14.8
3 State Farm Mutual Automobile Insurance 1,556,860 13.0
4 Progressive Corp. 956,466 8.0
5 Liberty Mutual 747,619 6.3
6 Travelers Companies Inc. 493,634 4.1
7 USAA Insurance Group 333,364 2.8
8 Nationwide Mutual Group 319,338 2.7
9 NYCM Insurance Group 282,940 2.4
10 MetLife Inc. 194,164 1.6

(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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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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Other Resources

FEMA Regional Flood Fact Sheet: http://www.floodsmart.gov/floodsmart/pdfs/Region_2_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: Catastrophes

 

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