Catastrophes: U.S.

U.S., NATURAL CATASTROPHES

Insured losses due to natural disasters in the United States in 2014 totaled $15.3 billion, far below the 2000 to 2013 average loss of $29 billion (in 2014 dollars), according to a January 2015 presentation by Munich Re and the Insurance Information Institute. Despite the late onset of the U.S. tornado season in 2014, insured severe thunderstorm losses exceeded $12.3 billion, the fourth highest annual total on record. The eastern United States experienced its coldest winter in over a decade. 2014 insured damages from winter storms and snow damage are estimated to exceed $2.3 billion. The Napa, California, earthquake caused economic losses of $700 million and insured losses of $150 million, becoming the largest earthquake loss in the United States since 2001. Several instances of damaging extreme precipitation events in heavily populated regions occurred in 2014. In California severe drought conditions persist despite some heavy rainfalls.

Property/casualty insurance industry catastrophes losses in the United States including man-made disasters plummeted from $35.0 billion in 2012 to $12.9 billion in 2013, the lowest since 2009’s $10.6 billion in insured losses, according to the Property Claim Services (PCS) division of Verisk Analytics. While insured catastrophe losses and the number of claims fell well below the 10-year average in 2013, the number of catastrophes rose in 2013 to 29 from 26 in 2012. The PCS figures do not include the federally administered National Flood Insurance Program (NFIP) payouts.

Below are charts from a Webinar hosted by Munich Re and the Insurance Information Institute. Munich Re, which does include flood insurance losses its calculations, puts insured natural catastrophe losses in the United States for 2014 at $15.3 billion.

Definitions

  • The Munich Re figures are based on property losses including, if applicable, agricultural, offshore, marine and aviation and NFIP losses.
  • PCS figures include catastrophes causing insured property losses of at least $25 million in 1997 dollars and affecting a significant number of policyholders and insurers. They exclude losses covered by the federally administered NFIP.

NATURAL DISASTER LOSSES IN THE UNITED STATES, 2014

Source: © 2015 Munich Re, NatCatSERVICE. As of January 2015.

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NATURAL DISASTER LOSSES IN THE UNITED STATES, 2005-2014

 

(1) Includes hail, lightning, and tornado.
(2) Includes winter storm, winter damage, cold wave, and blizzards.
(3) Includes river flood, and flash flood. Exclude flood damage losses caused by tropical cyclone and hurricane.
(4) Includes flooding caused by hurricane, tropical cyclone. Includes loss information from National Flood Insurance Program.

Source: © 2015 Munich Re, NatCatSERVICE. As of January 2015.

 

 

NATURAL CATASTROPHE LOSSES IN THE UNITED STATES, 1980-2014

(Overall and insured losses)

Source: © 2015 Munich Re, NatCatSERVICE; Property Claim Services (PCS), a  division of Verisk Analytics. As of January 2015.

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NUMBER OF NATURAL DISASTERS IN THE UNITED STATES, 1980–2014

(Number of events)

Source: © 2015 Munich Re, NatCatSERVICE. As of January 2015.

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U.S. CONVECTIVE LOSS EVENTS, 1980-2014

(2014 $ billions)

Source: 2015 Munich Re, NatCatSERVICE; Property Claim Services (PCS), a  division of Verisk Analytics. As of January 2015.

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U.S. WINTER STORM LOSS TRENDS, 1980-2014

(2014 $ billions)

Source: 2015 Munich Re, NatCatSERVICE, as of January 2015.

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SIGNIFICANT NATURAL CATASTROPHES IN THE UNITED STATES, 2014

Source: © 2015 Munich Re, NatCatSERVICE. As of January 2015.

 

 

INSURED U.S. TROPICAL CYCLONE LOSSES, 1980-2013

Source: 2014 Munich Re, NatCatSERVICE; Property Claim Services (PCS), a  division of Verisk Analytics; National Flood Insurance Plan. As of January 2014.

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NUMBER OF U.S. LANDFALLING TROPICAL CYCLONES, 1900-2013

Source: © 2014 Munich Re, NatCatSERVICE; NOAA. As of January 2014.

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U.S., TOTAL CATASTROPHES

The Property Claim Services (PCS) division of Verisk Analytics defines a catastrophe as an event that causes $25 million or more in insured property losses and affects a significant number of property/casualty policyholders and insurers. The estimates in the following chart represent anticipated insured losses from catastrophes on an industrywide basis, reflecting the total net insurance payment for personal and commercial property lines of insurance covering fixed property, vehicles, boats, related-property items, business interruption and additional living expenses.

 

ESTIMATED INSURED PROPERTY LOSSES, U.S. CATASTROPHES, 2004-2013 (1)

 

Year Number of
catastrophes
Number of
claims (millions)
Dollars when
occurred ($ billions)
In 2013 dollars (2)
($ billions)
2004 22 3.4 $27.5 $32.9
2005 24 4.4 62.3 72.2
2006 31 2.3 9.2 10.4
2007 23 1.2 6.7 7.3
2008 36 4.1 27.0 29.0
2009 27 2.2 10.5 11.2
2010 33 2.4 14.3 15.1
2011 30 4.9 33.6 34.7
2012 26 4.0 35.0 35.5
2013 28 1.8 12.9 12.9

(1) Includes catastrophes causing insured property losses of at least $25 million in 1997 dollars and affecting a significant number of policyholders and insurers. Excludes losses covered by the federally administered National Flood Insurance Program.
(2) Adjusted for inflation through 2013 by ISO using the GDP implicit price deflator.

Source: The Property Claim Services® (PCS®) unit of ISO®, a Verisk Analytics® company.

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THE TEN MOST COSTLY CATASTROPHES, UNITED STATES (1)

($ millions)

      Estimated insured property losses
Rank Date Peril Dollars when occurred In 2013 dollars (2)
1 Aug. 2005 Hurricane Katrina $41,100 $47,622
2 Sep. 2001 Fire, explosion: World Trade Center, Pentagon terrorist attacks 18,779 23,895
3 Aug. 1992 Hurricane Andrew 15,500 23,386
4 Oct. 2012 Hurricane Sandy 18,750 19,033
5 Jan. 1994 Northridge, CA earthquake 12,500 18,038
6 Sep. 2008 Hurricane Ike 12,500 13,426
7 Oct. 2005 Hurricane Wilma 10,300 11,934
8 Aug. 2004 Hurricane Charley 7,475 8,939
9 Sep. 2004 Hurricane Ivan 7,110 8,502
10 Apr. 2011 Flooding, hail and wind including the tornadoes that struck Tuscaloosa and other locations 7,300 7,540

(1) Property coverage only. Excludes flood damage covered by the federally administered National Flood Insurance Program.
(2) Adjusted for inflation through 2013 by ISO using the GDP implicit price deflator.

Source: The Property Claim Services® (PCS®) unit of ISO®, a Verisk Analytics® company.

 

 

INFLATION-ADJUSTED U.S. INSURED CATASTROPHE LOSSES BY CAUSE OF LOSS, 1994-2013 (1)

(2013 $ billions)

(1) Adjusted for inflation through 2013 by ISO using the GDP implicit price deflator. Excludes catastrophes causing direct losses less than $25 million in 1997 dollars. Excludes flood damage covered by the federally administered National Flood Insurance Program.
(2) Includes other wind, hail, and/or flood losses associated with catastrophes involving tornadoes.
(3) Includes wildland fires.
(4) Includes losses from civil disorders, water damage, utility service disruptions, and any workers compensation catastrophes generating losses in excess of PCS's threshold after adjusting for inflation.

Source: The Property Claim Services® (PCS®) unit of ISO®, a Verisk Analytics® company.

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U.S. INSURED CATASTROPHE LOSSES, 1989-2012 (1)

($ billions, 2012 dollars)

(1) Does not include National Flood Insurance Program losses.

*As of 1/2/13. Includes $18.8B gross loss estimate for Hurricane Sandy.

Note: 2001 figure includes $20.3B for 9/11 losses reported through 12/31/01 ($25.9B 2011 dollars). Includes only business and personal property claims, business interruption and auto claims. Non-prop/BI losses = $12.2B ($15.6B in 2011 dollars.)

Source: The Property Claim Services® (PCS®) unit of ISO®, a Verisk Analytics® company; Insurance Information Institute. As of January 2013.

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2013 CATASTROPHE SEASON

  • Oklahoma had the costliest insured catastrophe losses in 2013, $2 billion, followed by Texas with $1.5 billion, according to Property Claim Services (PCS), a division of Verisk Analytics.
  • The 10 states with the costliest insured disasters in 2013 had a total of 43 catastrophes, which resulted in $10.2 billion in insured losses.

 

TOP TEN STATES BY INSURED CATASTROPHE LOSSES, 2013 (1)

($ millions)

Rank State Estimated insured losses Number of events
1 Oklahoma $1,995 6
2 Texas 1,541 10
3 Illinois 1,169 6
4 Minnesota 942 2
5 Colorado 907 4
6 Mississippi 805 1
7 Nebraska 773 1
8 Georgia 762 4
9 Indiana 684 7
10 Louisiana 593 2

(1) Includes catastrophes causing insured property losses of at least $25 million in 1997 dollars and affecting a significant number of policyholders and insurers. Excludes losses covered by the federally administered National Flood Insurance Program.

Source: The Property Claim Services® (PCS®) unit of ISO®, a Verisk Analytics® company.

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TOP THREE STATES BY INFLATION-ADJUSTED INSURED CATASTROPHE LOSSES, 1983-2013 (1)

(2013 $ billions)

(1) Adjusted for inflation through 2013 by ISO using the GDP implicit price deflator. Excludes catastrophes causing direct losses less than $25 million in 1997 dollars. Excludes flood damage covered by the federally administered National Flood Insurance Program.
(2) Includes the other 47 states plus Washington, D.C., Puerto Rico, and the U.S. Virgin Islands.

Source: The Property Claim Services® (PCS®) unit of ISO®, a Verisk Analytics® company.

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