South Carolina Hurricane Insurance: Fact File

AUGUST 2016

  • South Carolina was impacted by three of the costliest hurricanes, based on insured damage, two of which occurred in 2004: Hurricane Charley and Hurricane Frances. The third, 1989’s Hurricane Hugo, caused extensive damage in South Carolina. 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 Hugo also resulted in $376.5 million in total flood insurance losses paid by the federal government’s NFIP.
  • Hurricane Hugo still ranks as the eighth most expensive hurricane in U.S. history, causing a total estimated insured loss of $4.2 billion in 1989 ($8.1 billion in 2015 dollars).
  • The 1893 South Carolina/Georgia (Sea Islands) hurricane was the fifth deadliest in U.S. history with between 1,000 and 2,000 lives lost.
  • The insured value of properties in coastal areas of South Carolina totaled $239.3 billion in 2013, according to an analysis by AIR Worldwide, accounting for 28 percent of the state’s total insured property exposure.
  • The number of people living in coastal areas South Carolina increased by 136,481 people or 7.0 percent from 2010 to 2.1 million people in 2015, according to the U.S. Census Bureau.
  • The South Carolina Wind and Hail Underwriting Association (SCWHUA), known as the Beach Plan or Wind Pool, is the market of last resort that provides wind and hail coverage to residential and commercial property owners in the coastal area of the state.
  • As of fiscal year 2015, the South Carolina Beach Plan had a total of 35,190 policies in force, down from 38,543 policies in force at the end of fiscal year 2014. There were 22,068 total policies in force at the end of 2005. The plan had an exposure of $12.3 billion in fiscal year 2015 down from $13.6 billion in 2014.

 

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

 

Rank Group/company Direct premiums written ($000) Market share
1 Travelers Companies Inc. $176,813 5.3%
2 Liberty Mutual 175,799 5.2
3 American International Group (AIG) 169,894 5.1
4 Zurich Insurance Group (2) 165,059 4.9
5 Chubb Ltd. (3) 149,538 4.5
6 Nationwide Mutual Group 133,530 4.0
7 Hartford Financial Services 130,817 3.9
8 Auto-Owners Insurance Co. 113,041 3.4
9 W. R. Berkley Corp. 96,000 2.9
10 Berkshire Hathaway Inc. 88,033 2.6

(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 South Carolina By Direct Premiums Written, 2015 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $373,069 23.3%
2 Allstate Corp. 173,007 10.8
3 USAA Insurance Group 123,647 7.7
4 Nationwide Mutual Group 89,219 5.6
5 Travelers Companies Inc. 87,751 5.5
6 Liberty Mutual 74,843 4.7
7 SC Farm Bureau Federation 64,751 4.0
8 Farmers Insurance Group of Companies (2) 49,070 3.1
9 United Insurance Holdings 46,107 2.9
10 Auto-Owners Insurance Co. 42,733 2.7

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

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $807,609 24.7%
2 Allstate Corp. 460,064 14.0
3 Berkshire Hathaway Inc. 356,546 10.9
4 Nationwide Mutual Group 292,607 8.9
5 USAA Insurance Group 268,700 8.2
6 Progressive Corp. 219,417 6.7
7 Liberty Mutual 152,552 4.7
8 Travelers Companies Inc. 120,896 3.7
9 SC Farm Bureau Federation 96,391 2.9
10 Auto-Owners Insurance Co. 52,297 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 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. Excludes 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 (PCS®), a Verisk Analytics® business.

 

 

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: Catastrophes

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

 

South Carolina Wind and Underwriting Association Website