DEFRAYING THE ECONOMIC COSTS OF DISASTERS
The insurance industry plays a vital role in helping individuals and businesses prepare for and recover from the potentially devastating effects of a disaster such as a catastrophic hurricane or storm or wildfire.
NATURAL DISASTER LOSSES IN THE UNITED STATES, 2014
CATASTROPHES IN THE UNITED STATES
Property Claim Services (PCS), a 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. They exclude loss-adjustment expenses. Property/casualty insurance industry catastrophes losses in the United States 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 PCS. 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 TEN MOST COSTLY CATASTROPHES, UNITED STATES (1)
ESTIMATED INSURED PROPERTY LOSSES, U.S. CATASTROPHES, 2005-2014 (1)