Catastrophes: U.S.

CATASTROPHES IN THE UNITED STATES

ISO 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. They exclude loss-adjustment expenses. Catastrophe losses surged in 2008, reaching $25.2 billion, the highest since the record $62.3 billion reached in  2005, the year of Hurricanes Katrina and Rita, and the fourth costliest year in a decade. There were 37 catastrophes in 2008, the highest number of catastrophic events in a single year since 1999.

The Ten Most Costly Catastrophes, United States (1)

THE TEN MOST COSTLY CATASTROPHES, UNITED STATES (1)

      Insured loss ($ millions)
Rank Date Peril Dollars when occurred In 2008 dollars (2)
1 Aug. 2005 Hurricane Katrina $41,100 $45,309
2 Aug. 1992 Hurricane Andrew 15,500 23,786
3 Sep. 2001 World Trade Center, Pentagon terrorist attacks 18,779 22,830
4 Jan. 1994 Northridge, CA earthquake 12,500 18,160
5 Oct. 2005 Hurricane Wilma 10,300 11,355
6 Sep. 2008 Hurricane Ike 10,655 (3) 10,655 (3)
7 Aug. 2004 Hurricane Charley 7,475 8,520
8 Sep. 2004 Hurricane Ivan 7,110 8,104
9 Sep. 1989 Hurricane Hugo 4,195 7,284
10 Sep. 2005 Hurricane Rita 5,627 6,203
(1) Property coverage only. Does not include flood damage covered by the federally administered National Flood Insurance Program.
(2) Adjusted to 2008 dollars by the Insurance Information Institute.
(3)  Estimated.

Source: ISO's Property Claim Services Unit; Insurance Information Institute.

Insured Losses, U.S. Catastrophes, 1999-2008 (1)

INSURED LOSSES, U.S. CATASTROPHES, 1999-2008 (1)

Year Number of catastrophes Number of claims (millions) Dollars when occurred ($ billions) In 2008 dollars (2) ($ billions)
1999 27 3.2 $8.3 $10.7
2000 24 1.5 4.6 5.8
2001 20 1.5 26.5 32.2
2002 25 1.8 5.9 7.1
2003 21 2.7 12.9 15.1
2004 22 3.4 27.5 31.3
2005 24 4.4 62.3 68.7
2006 33 2.3 9.2 9.8
2007 23 1.2 6.7 7.0
2008 37 3.9 25.2 25.2

(1) Includes catastrophes causing insured losses to the industry of at least $25 million and affecting a significant number of policyholders and insurers. Does not include flood damage covered by the federally administered National Flood Insurance Program.
(2) Adjusted to 2008 dollars by the Insurance Information Institute.

Source:  ISO's Property Claim Services Unit; Insurance Information Institute.

Inflation-Adjusted U.S. Catastrophe Losses By Cause Of Loss, 1988-2007 (1)
 (2007 $ billions)
Inflation-Adjusted U.S. Catastrophe Losses By Cause Of Loss, 1988-2007 (1)

(1) Catastrophes are all events causing direct insured losses to property of $25 million or more in 2007 dollars. Adjusted for inflation by ISO.
(2) Includes hurricanes and tropical storms.
(3) Excludes snow.
(4) Includes other geologic events such as volcanic eruptions and other earth movement.
(5) Does not include flood damage covered by the federally administered National Flood Insurance Program.
(6) Includes wildland fires.

Source: ISO's Property Claim Services Unit.

Top States With Highest Insured Catastrophe Losses, 2008

TOP STATES WITH HIGHEST INSURED CATASTROPHE LOSSES, 2008 ($ millions)

State Estimated insured loss (1)
Texas $10,200
Louisiana 2,200
Minnesota 1,600
Ohio 1,300
Georgia 1,000
Arkansas 776
Indiana 735
Kentucky 685
Kansas 638
Illinois 600

(1) Does not include flood damage covered by the federally administered National Flood Insurance Program.

Note: Catastrophes are assigned serial numbers by the Property Claim Services (PCS) Unit of ISO when the insured loss to the industry resulting from an occurrence reaches at least $25 million and affects a significant number of policyholders and insurers. 

Source: ISO's Property Claim Services Unit.

Top 15 Most Costly Hurricanes In The United States

TOP 15 MOST COSTLY HURRICANES IN THE UNITED STATES ($ millions)

        Estimated insured loss (1)
Rank Date Location Hurricane Dollars when occurred In 2008 dollars (2)
1 Aug. 25-30, 2005 AL, FL, GA, LA, MS, TN Katrina $41,100 $45,309
2 Aug. 24-26, 1992 FL, LA Andrew 15,500 23,786
3 Oct. 24, 2005 FL Wilma 10,300 11,355
4 Sep. 12-14, 2008 AR, IL, IN, KY, LA, MO, OH, PA, TX Ike 10,655 (3) 10,655 (3)
5 Aug. 13-14, 2004 FL, NC, SC Charley 7,475 8,520
6 Sep. 15-21, 2004 AL, DE, FL, GA, LA, MD, MS, NJ, NY, NC, OH, PA, TN, VA, WV Ivan 7,110 8,104
7 Sep. 17-22, 1989 GA, NC, PR, SC, VA, U.S. Virgin Islands Hugo 4,195 7,284
8 Sep. 20-26, 2005 AL, AR, FL, LA, MS, TN, TX Rita 5,627 6,203
9 Sep. 3-9, 2004 FL, GA, NC, NY, SC Frances 4,595 5,237
10 Sep. 15-29, 2004 DE, FL, GA, MD, NJ, NY, NC, PA, PR, SC, VA Jeanne 3,655 4,166
11 Sept. 21-28, 1998 AL, FL, LA, MS, PR, U.S. Virgin Islands Georges 2,955 3,903
12 Oct. 4, 1995 FL, AL, GA, NC, SC, TN Opal 2,100 2,967
13 Sep. 14-17, 1999 NC, NJ, VA, FL, SC, PA, 10 other states Floyd 1,960 2,533
14 Sep. 11, 1992 Kaui and Oahu, HI Iniki 1,600 2,455
15 Sep. 5, 1996 NC, SC, VA, MD, WV, PA, OH Fran 1,600 2,196
(1) Property coverage only. Does not include flood damage covered by the federally administered National Flood Insurance Program.
(2) Adjusted to 2008 dollars by the Insurance Information Institute.
(3) Estimated.

Source: ISO's Property Claim Services Unit; Insurance Information Institute.

Number Of Tornadoes And Related Deaths Per Month, 2007

Number Of Tornadoes And Related Deaths Per Month, 2007

Source: U.S. Department of Commerce, Storm Prediction Center, National Weather Service.

Flood Insurance: Hurricane Katrina Counties


County (State) Percent of homes with flood insurance policy
St. Bernard (LA) 57.7%
Jefferson (LA) 57.4
St. Charles (LA) 52.5
Plaquemines (LA) 45.6
St. Tammany (LA) 43.2
Orleans (LA) 40.0
St. John The Baptist (LA) 30.8
Baldwin (AL) 23.5
Hancock (MS) 23.4
Harrison (MS) 11.7
Jackson (MS) 10.4
Tangipahoa (LA) 7.3
St. James (LA) 7.0
Mobile (AL) 3.9
Source: Census Bureau; FEMA; New York Times.

Households With Disaster-Preparedness Measures
Households With Disaster-Preparedness Measures

Source: Insurance Research Council: Public Attitude Monitor, 2003.

 

 

Top Ten States In Coastal Population Growth, By Number Of People Added, 1980-2003 (1)

TOP TEN STATES IN COASTAL POPULATION GROWTH, BY NUMBER OF PEOPLE ADDED, 1980-2003 (1) (millions)

Rank State By people added Rank State By people added
1 California 9.9 6 New York 1.6
2 Florida 7.1 7 New Jersey 1.2
3 Texas 2.5 8 Maryland 1.2
4 Washington 1.7 9 Michigan 0.8
5 Virginia 1.6 10 Massachusetts 0.7
(table continues)

Value Of Insured Coastal Properties Vulnerable To Hurricanes By State, 2007 (1)

VALUE OF INSURED COASTAL PROPERTIES VULNERABLE TO HURRICANES BY STATE, 2007 (1) ($ billions)

State Coastal Total exposure (2) Coastal as a percent of total
Florida   $2,458.6 $3,119.6 79%
New York   2,378.9 3,851.1 62
Texas   895.1 3,493.0 26
Massachusetts   772.8 1,426.4 54
New Jersey   635.5 1,875.2 34
Connecticut   479.9 750.4 64
Louisiana   224.4 638.4 35
South Carolina   191.9 698.2 28
Virginia   158.8 1,409.4 11
Maine   146.9 250.0 59
North Carolina   132.8 1,431.8 9
Alabama   92.5 744.8 12
Georgia   85.6 1,573.3 5
Delaware   60.6 170.8 36
New Hampshire   55.7 237.4 23
Rhode Island   54.1 189.3 29
Mississippi   51.8 394.6 13
Maryland   14.9 1,078.4 1
Total, above states  $8,890.8 $23,332.4 38%
Total U.S. $8,890.8 $53,495.0 17%
(1) Includes residential and commercial properties. Ranked by value of 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 and the time value of business interruption coverage.

Source: AIR Worldwide.