Catastrophes: U.S.

Catastrophes: U.S.

U.S., NATURAL CATASTROPHES

Insured losses due to natural disasters in the United States in 2013 totaled $12.8 billion, far below the 2000 to 2012 average loss of $29.4 billion (in 2013 dollars), according to a January 2014 presentation by Munich Re. Although 2013 was a quiet Atlantic hurricane year, insured losses from thunderstorm and tornado events exceeded $10 billion. Colorado experienced record-setting losses from wildfires in June, then record flooding in September. The data were released at a Webinar hosted by Munich Re and the Insurance Information Institute on January 7, 2014.

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 catastrophe losses in the United States for 2013 at $12.8 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.

Severe thunderstorms accounted for the bulk of insured catastrophe losses, $10.3 billion out of the total $12.8 billion in 2013, according to Munich Re. Insured losses for winter storms accounted for another $1.9 billion.

 

NATURAL DISASTER LOSSES IN THE UNITED STATES, 2013

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

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SIGNIFICANT U.S. NATURAL CATASTROPHES, 2013 (1)

($ billions, 2013 dollars)

(1) $1 billion economic loss and/or 50 fatalities, as of January 7, 2014. Losses based on property losses including, if applicable, agricultural, offshore, marine, aviation and National Flood Insurance Program losses and may differ from data shown elsewhere.

Source: © 2014 Munich Re. NatCatSERVICE.

 

 

NATURAL CATASTROPHES IN THE U.S., 2003-2012 (1)

(2012 $ billions)

        Insured losses 
  Number of events Fatalities Overall losses Total 10-year average
Earthquake/tsunami 29 6 $1 $0.3 $0.03
Tropical cyclone (2) 46 1,975 378 204.0 20.40
Severe thunderstorm (3) 775 1,630 169 107.0 10.70
Heatwave/drought 21 425 48 20.0 2.00
Wildfire 253 112 15 8.0 0.80
Winter events (4) 114 765 22 13.0 1.30
River flood/flash flood (5) 162 245 23 4.0 0.40

(1) As of July 2013.
(2) Includes flooding caused by hurricanes and other tropical cyclones. Includes National Flood Insurance Program losses
(3) Includes tornadoes.
(4) Includes winter storms, winter damage, and blizzards.
(5) Excludes flood damage losses caused by tropical cyclones and hurricanes.

Source: © 2013 Munich Re, Geo Risks Research, NatCatSERVICE.

 

 

 

NATURAL CATASTROPHE LOSSES IN THE UNITED STATES, 1980-2013

(Overall and insured losses)

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

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NUMBER OF NATURAL DISASTERS IN THE UNITED STATES, 1980–2013

(Number of events)

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

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U.S. THUNDERSTORM LOSS TRENDS, 1980-2013

(Annual totals 1980–2013)

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

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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. WINTER STORM LOSS TRENDS, 1980-2011

(Annual totals 1980 – 2011)

Source: © 2012 Munich Re, NatCatSERVICE.

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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 2012 dollars (2)
($ billions)
2004 22 3.4 $27.5 $32.8
2005 24 4.4 62.3 71.9
2006 33 2.3 9.2 10.3
2007 23 1.2 6.7 7.3
2008 37 4.1 27.0 28.7
2009 28 2.2 10.6 11.1
2010 34 2.4 14.3 14.9
2011 30 4.9 33.6 34.2
2012 26 4.0 35.0 35.0
2013 29 1.8 12.9 NA

(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 2012 by ISO using the GDP implicit price deflator.

NA=Data not available.

Source: Property Claim Services (PCS), a division of Verisk Analytics.

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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 $47,623
2 Sep. 2001 Fire, explosion: World Trade Center,
Pentagon terrorist attacks
18,779 23,895
3 Aug. 1992 Hurricane Andrew 15,500 23,387
4 Oct. 2012 Hurricane Sandy  18,750 19,034
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 11,935
8 Aug. 2004 Hurricane Charley 7,475 8,939
9 Sep. 2004 Hurricane Ivan 7,110 8,503
10 Apr. 2011 Flooding, hail and wind including the tornadoes
that struck Tuscaloosa, AL and other locations
7,300 7,540

(1) Property coverage only. Does not include 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: Property Claim Services (PCS), a division of Verisk Analytics.

 

 

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: Property Claim Services (PCS), a  division of Verisk Analytics; 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 1,540 10
3 Illinois 1,190 6
4 Minnesota 909 2
5 Colorado 907 4
6 Mississippi 805 1
7 Nebraska 773 1
8 Georgia 762 4
9 Indiana 677 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: Property Claim Services (PCS), a division of Verisk Analytics.

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TOP THREE STATES BY INFLATION-ADJUSTED INSURED CATASTROPHE LOSSES, 1983-2012 (1)

(2012 $ billions)

(1) Adjusted for inflation through 2012 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: Property Claim Services (PCS), a division of Verisk Analytics.

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