Fact file: Louisiana hurricane insurance

May 2019

  • The costliest Louisiana hurricane ever was Hurricane Katrina, which caused nearly $25.4 billion in insured losses in Louisiana in 2005 (about $33 billion in 2018 dollars). These loss statistics do not include flood damage covered under the federal government’s National Flood Insurance Program (NFIP).
  • Hurricane Katrina resulted in $13.1 billion in flood insurance losses in Louisiana paid by the NFIP.
  • Hurricane Katrina was the costliest hurricane to hit the U.S. (See chart below.)
  • Hurricane Katrina was also the deadliest hurricane in Louisiana’s history, with some 1,800 fatalities reported.
  • Standard homeowners policies typically do not cover flood damage. Flood insurance is covered by the federally managed National Flood Insurance Program, and private flood insurance is becoming increasingly available.
  • The number of flood insurance policies in force in Louisiana rose by 27 percent from 388,121 in 2005 to 494,370 in 2006, the year following hurricanes Katrina and Rita. There were 498,271 flood insurance policies in Louisiana in 2017 up from 491,311 in 2016.
  • In Louisiana, about 817,500 homes were at risk in 2018 for storm surge damage from hurricanes up to Category 5 strength, according to CoreLogic, Inc. These homes would cost $186.1 billion to completely rebuild, including labor and materials.
  • The number of people living in coastal areas in Louisiana increased from 2010 to 2015 by 128,232 people or 4 percent to 3.7 million, according to U.S. Census Bureau estimates. About 79 percent of the total population of Louisiana lived in coastal counties in 2015.
  • Louisiana Citizens Property Insurance Corp. (Louisiana Citizens) was created by the state legislature in 2003 to oversee the state’s Coastal and FAIR (Fair Access to Insurance Requirements) plans. This state-run entity acts as a market of last resort for residential and commercial property insurance in Louisiana.
  • Citizens is working to transfer policies back to private insurers, subject to regulatory approval and has completed eight rounds of depopulation.
  • Louisiana Citizens had a total of 61,549 policies in force for fiscal year 2017. Its exposure to loss—insured value of all properties—was almost $7.6 billion for fiscal year 2017.
  • Louisiana Citizens was the state’s thirty-sixth largest homeowners insurance company with a 0.5 percent market share in 2017, according to NAIC data sourced from S&P Global Market Intelligence. It was the ninth largest in 2014 and fifth largest in 2010.

Top 10 Writers Of Commercial Insurance In Louisiana By Direct Premiums Written, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Travelers Companies Inc. $280,207 5.4%
2 Liberty Mutual 239,035 4.6
3 CNA 230,311 4.4
4 Louisiana Workers' Comp Corp. 213,697 4.1
5 American International Group (AIG) 212,939 4.1
6 Chubb 203,279 3.9
7 Zurich 202,384 3.9
8 State Farm 133,357 2.6
9 Nationwide Mutual Group 116,986 2.2
10 Progressive 97,886 1.9

(1) Before reinsurance transactions.

Source: NAIC data, sourced from S&P Global Market Intelligence, Insurance Information Institute.

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Top 10 Writers Of Homeowners Insurance In Louisiana By Direct Premiums Written, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm $497,617 26.2%
2 Allstate Corp. 214,225 11.3
3 Liberty Mutual 124,850 6.6
4 USAA 117,201 6.2
5 LA Farm Bureau Mutual Insurance Co. 92,696 4.9
6 Progressive 74,007 3.9
7 UPC Insurance 71,820 3.8
8 FEDNAT 37,186 2.0
9 Farmers Insurance Group of Companies 33,900 1.8
10 Lighthouse Property Insurance Corp. 33,390 1.8

(1) Before reinsurance transactions.

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 Louisiana By Direct Premiums Written, 2018 (1)

Rank Group/company Direct premiums written ($000) Market share
1 State Farm $1,524,938 31.6%
2 Progressive 708,874 14.7
3 Allstate Corp 536,759 11.1
4 Berkshire Hathaway Inc.; 496,308 10.3
5 USAA 278,238 5.8
6 Liberty Mutual 248,785 5.2
7 Southern Farm Bureau Casualty 244,503 5.1
8 GoAuto Insurance Co. 165,254 3.4
9 National General Holdings Corp. 91,500 1.9
10 Safeway Insurance 78,247 1.6

(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
Rank Date Location Hurricane Dollars when occurred In 2018 dollars (2)
1 Aug. 25-30, 2005 AL, FL, GA, LA, MS, TN Hurricane Katrina $41,100 $51,882
2 Sep. 19-22, 2017 PR, USVI Hurrican Maria (3) 25,000-30,000 25,600-30,700
3 Sep. 6-12, 2017 AL, FL, GA, NC, PR, SC, UV Hurricane Irma (3) 20,000-25,000 20,400-25,600
4 Aug. 25-Sep. 1, 2017 AL, LA, MS, NC, TN, TX Hurricane Harvey (3) 18,000-20,000 18,400-20,400
5 Oct. 28-31, 2012 CT, DC, DE, MA, MD, ME, NC, NH,
NJ, NY, OH, PA, RI, VA, VT, WV
Hurricane Sandy 18,750 20,688
6 Aug. 24-26, 1992 FL, LA Hurricane Andrew 15,500 25,404
7 Sep. 12-14, 2008 AR, IL, IN, KY, LA, MO, OH, PA, TX Hurricane Ike 12,500 14,631
8 Oct. 24, 2005 FL Hurricane Wilma 10,300 13,002
9 Aug. 13-14, 2004 FL, NC, SC Hurricane Charley 7,475 9,729
10 Sep. 15-21, 2004 AL, DE, FL, GA, LA, MD, MS, NC,
NJ, NY, OH, PA, TN, VA, WV
Hurricane Ivan 7,110 9,254

(1) Property losses only. Excludes flood damage covered by the federally administered National Flood Insurance Program. Ranked on dollars when occurred. As of August 8, 2019.
(2) Adjusted for inflation through 2018 by the Insurance Information Institute using the GDP implicit price deflator.
(3) Insurance Information Institute estimate based on data from catastrophe risk modelers, reinsurance companies, the Property Claims Services unit of Verisk Analytics, the Federal Emergency Management Agency of the U.S. Department of Homeland Security, and the Florida Office of Insurance Regulation. These estimates are preliminary because the organizations involved periodically resurvey the events, and the severity of losses and other factors create a high level of uncertainty surrounding the ultimate loss figures.

Source: Insurance Information Institute, catastrophe risk modelers, reinsurance companies, U.S. Department of Homeland Security, the Florida Office of Insurance Regulation,
the Property Claim Services® (PCS®) unit of ISO®, a Verisk Analytics® company, and the U.S. Bureau of Economic Analysis.

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Additional resources

Louisiana Citizens: Website

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