Virginia Hurricane Insurance: Fact File

AUGUST 2016

  • Virginia was one of over a dozen states impacted by 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. This would make Sandy the third most costly U.S. hurricane, after hurricanes Katrina and Andrew.
  • Sandy resulted in $295 million in private insurance claims in Virginia. At $9.6 billion and $6.3 billion, respectively, New York and New Jersey suffered the largest private insurance losses by far from Sandy.
  • Three of the costliest hurricanes to hit the U.S., based on insured property losses, caused damage in Virginia: Hurricane Sandy in 2012, Hurricane Ivan in 2004, and Hurricane Hugo in 1989. (See chart below.)
  • Virginia was one of 14 states affected by August 2011’s Hurricane Irene, the first hurricane to hit the U.S. since Hurricane Ike in 2008. Irene impacted 14 states, causing a total of $4.3 billion in insured property damage, according to ISO, not including flood losses covered under the National Flood Insurance Program (NFIP). The NFIP puts its claims payouts from Irene at $1.3 billion (in all states).
  • There were 105,072 flood insurance policies in Virginia in 2015. Standard homeowners policies typically do not cover flood damage. Flood insurance is covered by the National Flood Insurance Program.
  • The Virginia Property Insurance Association was formed in 1968 to provide dwelling and commercial property coverages to individuals and businesses throughout the state who are unable to obtain coverage through the voluntary insurance market. The plan had 33,835 policies with an exposure of $4.7 billion in fiscal year 2015.
  • The insured value of properties in coastal areas of Virginia totaled $182.3 billion in 2013, according to an analysis by AIR Worldwide, accounting for 10 percent of the state’s total insured property exposure.

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

 

Rank Group/company Direct premiums written ($000) Market share
1 American International Group (AIG) $375,640 6.9%
2 Travelers Companies Inc. 354,300 6.5
3 Chubb Ltd. (2) 290,856 5.4
4 Nationwide Mutual Group 259,456 4.8
5 Zurich Insurance Group (3) 246,703 4.6
6 Liberty Mutual 245,844 4.5
7 Erie Insurance Group 221,868 4.1
8 Hartford Financial Services 214,394 4.0
9 CNA Financial Corp. 177,584 3.3
10 Cincinnati Financial Corp. 125,644 2.3

(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 Virginia By Direct Premiums Written, 2015 (1)

Rank Group/company Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $412,106 19.4%
2 USAA Insurance Group 328,845 15.5
3 Allstate Corp. 204,289 9.6
4 Travelers Companies Inc. 187,963 8.8
5 Nationwide Mutual Group 183,347 8.6
6 Liberty Mutual 125,609 5.9
7 Erie Insurance Group 118,421 5.6
8 Farmers Insurance Group of Companies (2) 51,288 2.4
9 VA Farm Bureau Federation 47,455 2.2
10 American Family Insurance Group 43,283 2.0

(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 Virginia By Direct Premiums Written, 2015 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $834,159 17.1%
2 Berkshire Hathaway Inc. 821,256 16.9
3 USAA Insurance Group 614,960 12.6
4 Allstate Corp. 489,738 10.1
5 Nationwide Mutual Group 447,190 9.2
6 Progressive Corp. 393,733 8.1
7 Erie Insurance Group 174,970 3.6
8 Liberty Mutual 152,855 3.1
9 VA Farm Bureau Federation 106,588 2.2
10 Travelers Companies Inc. 97,532 2.0

(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.

 

 

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_3_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