Fact file: Mississippi hurricane insurance

September 2018

  • The costliest Mississippi hurricane in recent years was Hurricane Katrina, which caused nearly $14 billion in insured losses in the state in 2005 (about $18.2 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 was the costliest hurricane to hit the U.S. Mississippi was also severely impacted by Hurricane Harvey in 2017.
  • Hurricane Katrina resulted in $2.5 billion in flood insurance losses in Mississippi paid by the NFIP.
  • There were 64,372 flood insurance policies covered under the NFIP in Mississippi in 2017.
  • Hurricane Katrina was among the deadliest in Mississippi history, with more than 250 lives lost in the state alone.
  • The number of people living in coastal areas in Mississippi increased from 2010 to 2015 by 18,713 people or 2.9 percent to 648,360, according to the U.S. Census Bureau.
  • The insured value of properties in coastal areas of Mississippi totaled $71 billion in 2015, accounting for 14 percent of the state’s total insured property exposure, according to an analysis by AIR Worldwide.
  • The Mississippi Windstorm Underwriting Association (MWUA) was established by the state legislature in 1987 as a market of last resort to provide windstorm and hail insurance in the coastal areas of Mississippi. MWUA provides windstorm and hail coverage only in the coastal counties of George, Hancock, Harrison, Jackson, Pearl River, and Stone.
  • MWUA policies contain a hurricane deductible of 2 percent of the insured value of the home. The hurricane deductible is triggered by windstorm losses resulting from a named storm as declared by the National Hurricane Center of the National Weather Service and remains in effect until a tropical storm warning is over.
  • The MWUA had 26,616 policies with an exposure of $4 billion in fiscal year 2017.

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

 

Rank Group/company Direct premiums written ($000) Market share
1 Travelers Companies Inc. $177,029 7.6%
2 Liberty Mutual 117,148 5.0
3 Zurich 92,389 4.0
4 CNA 86,620 3.7
5 Nationwide Mutual Group 84,770 3.7
6 Chubb 80,888 3.5
7 W. R. Berkley Corp. 76,384 3.3
8 CGB Insurance Co. 71,362 3.1
9 American International Group (AIG) 71,193 3.1
10 Progressive 59,925 2.6

(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 Mississippi By Direct Premiums Written, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm $258,432 26.1%
2 Southern Farm Bureau Casualty 158,600 16.0
3 Allstate Corp. 86,242 8.7
4 Liberty Mutual 73,415 7.4
5 Nationwide 70,466 7.1
6 USAA 46,895 4.7
7 Farmers Insurance Group of Companies 36,997 3.7
8 Alfa Mutual Group 35,816 3.6
9 Shelter Insurance 29,321 3.0
10 Travelers 22,408 2.3

(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 Mississippi By Direct Premiums Written, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm  $485,367 24.5%
2 Southern Farm Bureau Casualty  232,231 11.8
3 Progressive  220,489 11.2
4 Allstate Corp.  151,845 7.7
5 Liberty Mutual  142,419 7.2
6 Berkshire Hathaway Inc.  134,031 6.8
7 USAA  108,268 5.5
8 Nationwide  100,340 5.1
9 Alfa Mutual Group  71,820 3.6
10 Shelter Insurance  65,411 3.3

(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 Hurricane 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) 22,000-27,000 22,500-27,600
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. 10-12, 2018 AL, FL, GA, MD, NC, SC, VA Hurricane Michael 8,000-13,000 8,000-13,000
9 Oct. 24, 2005 FL Hurricane Wilma 10,300 13,002
10 Aug. 13-14, 2004 FL, NC, SC Hurricane Charley 7,475 9,729

(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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Estimated Value Of Insured Coastal Properties Vulnerable To Hurricanes By State, 2015 (1)

($ billions)

Rank State Commercial Residential Total Coastal Total exposure (2) Coastal as a percent of total
1 New York  $2,093 $1,272 $3,365 $5,571 68%
2 Florida  1,483 1,718 3,200 4,058 79
3 Virginia  92 106 1,993 2,078 10
4 Texas  725 638 1,363 5,358 28
5 Massachusetts  441 511 953 1,765 54
6 New Jersey  373 422 795 2,453 32
7 Connecticut  290 385 675 1,025 64
8 Louisiana  182 147 329 896 38
9 South Carolina  112 126 239 931 26
10 Maine  73 111 184 321 53
11 North Carolina  69 109 178 2,014 8
12 Alabama  63 65 128 1,014 13
13 Georgia  53 56 109 2,171 5
14 Delaware  34 59 93 241 29
15 New Hampshire  32 42 74 328 23
16 Mississippi  36 35 71 527 14
17 Rhode Island  25 46 71 241 22
18 Maryland  8 10 18 1,476 1
  All states above  $6,184 $5,858 $13,838 $32,468 38%
  Total, United States $6,184 $5,858 $13,838 NA 16%

(1) Includes residential and commercial Gulf and East Coast properties, as of December 31, 2015. Ranked by value of total 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, additional living expenses and the time value of business interruption coverage.

NA=Data not available.

Source: AIR Worldwide.

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Other Resources

I.I.I. Facts & Stats: Flood Insurance

I.I.I. Facts & Stats: Hurricanes

I.I.I. Issues Updates: Hurricane and Windstorm Deductibles

Mississippi Windstorm Underwriting Association Website

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