Fact file: Louisiana hurricane insurance

September 2018

  • The costliest Louisiana hurricane ever was Hurricane Katrina, which caused nearly $25.4 billion in insured losses in Louisiana in 2005 (about $33.0 billion in 2018 dollars). These loss statistics do not include flood damage covered under the federal government’s National Flood Insurance Program (NFIP). Standard homeowners policies typically do not cover flood damage.
  • 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.
  • 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.
  • The total value of insured coastal property in Louisiana totaled $329 billion in 2015, accounting for 38 percent of the state’s total insured property exposure, according to an analysis by AIR Worldwide.
  • 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, 2017 (1)

Rank Group/company Direct premiums written ($000) Market share
1 Travelers Companies Inc. $274,505 5.5%
2 Liberty Mutual 233,573 4.6
3 American International Group (AIG) 223,027 4.4
4 CNA Financial Corp. 221,544 4.4
5 Chubb Ltd. 209,548 4.2
6 Louisiana Workers' Comp Corp. 201,870 4.0
7 Zurich Insurance Group 197,605 3.9
8 State Farm  136,734 2.7
9 Nationwide Mutual Group 113,176 2.2
10 Markel Corp. 102,272 2.0

(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, 2017 (1)

Rank Group/company Direct premiums written ($000) Market share
1 State Farm  $502,343 27.0%
2 Allstate Corp. 218,307 11.8
3 Liberty Mutual 127,704 6.9
4 USAA Insurance Group 110,018 5.9
5 LA Farm Bureau Mutual Insurance Co. 93,000 5.0
6 Progressive  70,970 3.8
7 United Insurance Holdings 65,900 3.5
8 Lighthouse Property Insurance Corp. 35,050 1.9
9 Farmers Insurance Group of Companies (2) 33,728 1.8
10 Maison Insurance Co. 33,039 1.8

(1) Before reinsurance transactions.
(2) Data for Farmers Insurance Group of Companies and Zurich Financial Group (which owns Farmers' management company) are reported separately by S&P Global Market Intelligence.

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, 2017 (1)

Rank Group/company Direct premiums written ($000) Market share
1 State Farm $1,512,622 33.6%
2 Progressive 602,564 13.4
3 Allstate Corp. 502,616 11.2
4 Berkshire Hathaway Inc. 432,095 9.6
5 Liberty Mutual 253,836 5.6
6 USAA Insurance Group 248,894 5.5
7 Southern Farm Bureau Casualty 231,086 5.1
8 GoPrivate Passenger Insurance Co. 144,626 3.2
9 National General Holdings Corp. 92,207 2.0
10 Safeway Insurance 72,940 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 losses (2)
Rank Date Location Hurricane Dollars when
occurred
In 2017
dollars (3)
1 Aug. 25-30, 2005 AL, FL, GA, LA, MS, TN Hurricane Katrina $41,100 $50,751
2 Sep.19-22, 2017 PR, UV Hurrican Maria (3) (3)
3 Aug. 24-26, 1992 FL, LA Hurricane Andrew 15,500 24,852
4 Sep. 6-12, 2017 AL, FL, GA, NC, PR, SC, UV Hurricane Irma (3) (3)
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 20,240
6 Aug. 25-Sep. 1, 2017 AL, LA, MS, NC, TN, TX Hurricane Harvey (3) (3)
7 Sep. 12-14, 2008 AR, IL, IN, KY, LA, MO, OH, PA, TX Hurricane Ike 12,500 14,311
8 Oct. 24, 2005 FL Hurricane Wilma 10,300 12,719
9 Aug. 13-14, 2004 FL, NC, SC Hurricane Charley 7,475 9,518
10 Sep. 15-21, 2004 AL, DE, FL, GA, LA, MD, MS, NC, NJ, NY, OH, PA, TN, VA, WV Hurricane Ivan 7,110 9,053

(1) Property coverage only. Does not include flood damage covered by the federally administered National Flood Insurance Program.
(2) Adjusted for inflation through 2017 by the Insurance Information Institute using the GDP implicit price deflator.
(3) Loss estimate not yet available from PCS, but a relative ranking is provided.

Source: The Property Claim Services® (PCS®) unit of ISO®; a Verisk Analytics® company, U.S. Bureau of Economic Analysis.

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Additional resources

Louisiana Citizens: Website

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