Fact file: Florida hurricane insurance

  • Florida accounted for 13 percent of all U.S. insured catastrophe losses from 1986 to 2015: $68.6 billion out of $515.4 billion, based on data from the PCS division of ISO. (Adjusted for inflation by ISO using the GDP implicit price deflator.)
  • Seven of the 10 costliest hurricanes in U.S. history have impacted Florida. Six of these storms occurred within just two years: 2004 and 2005. (See chart below.)
  • The costliest hurricane, based on insured property losses to Florida, was 1992’s Hurricane Andrew. It caused $24 billion in damage to Florida and Louisiana (in 2016 dollars). (See chart below.) Florida leads the nation in the number of flood policies, according to the National Flood Insurance Program, with about 1.8 million policies in force in 2015. Standard homeowners policies typically do not cover flood damage. Flood insurance is covered by the National Flood Insurance Program.
  • The number of people living in coastal areas in Florida increased by 4.2 million, or 27 percent, from 15.6 million in 2000 to 19.8 million in 2015, according to the U.S. Census Bureau. About 98 percent of the total population of Florida lives in one of the coastal counties.
  • The insured value of properties in coastal areas of Florida totaled $2.9 trillion in 2013, accounting for 79 percent of the state’s total insured property exposure, according to an analysis by AIR Worldwide.
  • Given the growth in the number and value of insured property, a repeat of the hurricane that devastated Miami in 1926 would have resulted in approximately $130.2 billion in insured damage in 2016, according to Karen Clark and Co.
  • After its establishment in 2002, when the state passed legislation combining two separate high risk insurance pools known as the Florida Windstorm Underwriting Association and the Florida Residential Property & Casualty Joint Underwriting Association, Citizens Property Insurance Corp. (CPIC) experienced exponential growth. As a result Florida Citizens has evolved from a market of last resort to the state’s largest property insurer.
  • Florida Citizens Property Insurance Corp. provides multiperil and wind-only insurance coverage to Florida homeowners, commercial residential and commercial business property owners.
  • Direct homeowners insurance premiums in Florida written by Citizens was $429 million in 2016 down from $795 million in 2014.
  • Citizens was the state's fifth leading homeowners insurer in 2016, with a market share of 4.9, down from 9.1 percent in 2014. It is also the ninth largest commercial insurer, with a 2.6 percent market share in 2016, down from 6.6 percent in 2014.
  • Florida Citizens had 701,097 policies with an exposure of $150.5 billion in fiscal year 2015, according to the Property Insurance Plans Service (PIPSO).

 

Top 10 Writers Of Commercial Insurance In Florida By Direct Premiums Written, 2016 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Assurant Inc.  $2,007,313 9.7%
2 American International Group (AIG) 947,526 4.6
3 Chubb Ltd. 921,461 4.4
4 Zurich Insurance Group (2) 824,938 4.0
5 Liberty Mutual  731,817 3.5
6 Travelers Companies Inc.  626,739 3.0
7 CNA Financial Corp.  610,351 2.9
8 Progressive Corp.  602,393 2.9
9 Citizens Property Insurance Corp. 545,117 2.6
10 Berkshire Hathaway Inc.  523,166 2.5

(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 Homeowners Insurance In Florida By Direct Premiums Written, 2016 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Universal Insurance Holdings $788,089 8.9%
2 Tower Hill Group                                  607,919          6.9
3 State Farm Mutual Automobile Insurance                                  581,448          6.6
4 Federated National Insurance Co.                                  430,041          4.9
5 Citizens Property Insurance Corp.                                  428,724          4.9
6 Heritage Insurance Holdings Inc.                                  398,206          4.5
7 USAA Insurance Group                                  382,149          4.3
8 HCI Group, Inc.                                  321,568          3.7
9 Progressive Corp.                                  311,885          3.5
10 Florida Peninsula Holdings LLC                                  301,021          3.4

(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 Florida By Direct Premiums Written, 2016 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Berkshire Hathaway Inc. $3,952,147 22.8%
2 State Farm Mutual Automobile Insurance 2,806,322 16.2
3 Progressive Corp. 2,555,513 14.7
4 Allstate Corp. 1,850,652 10.7
5 USAA Insurance Group 1,190,476 6.9
6 Liberty Mutual 566,513 3.3
7 Infinity P&C Corp. 414,519 2.4
8 Travelers Companies Inc.  403,222 2.3
9 Farmers Insurance Group of Companies (2) 376,329 2.2
10 National General Holdings Corp. 358,842 2.1

(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 Costliest Hurricanes In The United States (1)

($ millions)

        Estimated insured loss (2)
Rank Date Location Hurricane Dollars when
occurred
In 2016
dollars (3)
1 Aug. 25-30, 2005 AL, FL, GA, LA, MS, TN Hurricane Katrina $41,100 $49,793
2 Aug. 24-26, 1992 FL, LA Hurricane Andrew 15,500 24,478
3 Oct. 28-31, 2012 CT, DC, DE, MA, MD, ME,
NC,NH, NJ, NY, OH, PA,
RI, VA, VT, WV
Hurricane Sandy 18,750 19,860
4 Sep. 12-14, 2008 AR, IL, IN, KY, LA, MO, OH, PA, TX Hurricane Ike 12,500 14,036
5 Oct. 24, 2005 FL Hurricane Wilma 10,300 12,479
6 Aug. 13-14, 2004 FL, NC, SC Hurricane Charley 7,475 9,348
7 Sep. 15-21, 2004 AL, DE, FL, GA, LA, MD, MS, NC, NJ, NY, OH, PA, TN, VA, WV Hurricane Ivan 7,110 8,891
8 Sep. 17-22, 1989 GA, NC, PR, SC, UV, VA Hurricane Hugo 4,195 7,260
9 Sep. 20-26, 2005 AL, AR, FL, LA, MS, TN, TX Hurricane Rita 5,627 6,817
10 Sep. 3-9, 2004 FL, GA, NC, NY, SC Hurricane Frances 4,595 5,746

(1) Includes hurricanes occurring through 2016.
(2) Property coverage only. Excludes flood damage covered by the federally administered National Flood Insurance Program.
(3) Adjusted for inflation through 2016 by ISO using the GDP implicit price deflator.

Source: Property Claim Services (PCS®), a Verisk Analytics® business.

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Top Three States By Inflation-Adjusted Insured Catastrophe Losses, 1987-2016 (1)

(2016 $ billions)

(1) Adjusted for inflation through 2016 by ISO using the GDP implicit price deflator. Excludes catastrophes causing direct losses less than $25  million in 1997 dollars. Excludes flood damage covered by the federally administered National Flood Insurance Program.
(2) Includes the other 47 states plus Washington, D.C., Puerto Rico, and the U.S. Virgin Islands.

Source: Property Claim Services (PCS)®, a unit of ISO®, a Verisk Analytics® business.

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Estimated Insured Losses For The Top 10 Historical Hurricanes Based On Current Exposures (1)

($ billions)

Rank Date Event Category 2015 insured loss
1 Sep. 18, 1926 Great Miami Hurricane 4 $119
2 Sep. 17, 1928 Okeechobee Hurricane 4 72
3 Sep. 17, 1947 Fort Lauderdale Hurricane 3 60
4 Aug. 29, 2005 Hurricane Katrina 3 58
5 Sep. 9, 1965 Hurricane Betsy 4 53
6 Aug. 24, 1992 Hurricane Andrew 5 52
7 Sep. 10, 1960 Hurricane Donna 4 46
8 Sep. 21, 1938 The Great New England Hurricane 3 44
9 Sep. 9, 1900 Galveston Hurricane 4 44
10 Sep. 15, 1950 Hurricane Easy 2 28

(1) Modeled loss to property, contents and business interruption and additional living expenses for residential, mobile home, commercial and auto exposures as of end-2015. Losses include demand surge.

Source: AIR Worldwide Corporation.

 

 

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 $2,093.0 $1,272.0 $3,365.0 $5,571.0 68%
2 Florida 1,483.0 1,718.0 3,200.0 4,058.0 79
3 Virginia 92.0 106.0 1,993.0 2,078.0 10
4 Texas 725.0 638.0 1,363.0 5,358.0 28
5 Massachusetts 441.0 511.0 953.0 1,765.0 54
6 New Jersey 373.0 422.0 795.0 2,453.0 32
7 Connecticut 290.0 385.0 675.0 1,025.0 64
8 Louisiana 182.0 147.0 329.0 896.0 38
9 South Carolina 112.0 126.0 239.0 931.0 26
10 Maine 73.0 111.0 184.0 321.0 53
11 North Carolina 69.0 109.0 178.0 2,014.0 8
12 Alabama 63.0 65.0 128.0 1,014.0 13
13 Georgia 53.0 56.0 109.0 2,171.0 5
14 Delaware 34.0 59.0 93.0 241.0 29
15 New Hampshire 32.0 42.0 74.0 328.0 23
16 Mississippi 36.0 35.0 71.0 527.0 14
17 Rhode Island 25.0 46.0 71.0 241.0 22
18 Maryland 8.0 10.0 18.0 1,476.0 1
  All states shown $6,184.0 $5,858.0 $13,838.0 $32,468.0 38%
  Total, United States $6,184.0 $5,858.0 $13,838.0 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.

Source: AIR Worldwide.

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Additional resources

FEMA Regional Flood Fact Sheet: http://www.floodsmart.gov/floodsmart/pdfs/Region_4_Hurricane_fact_sheet_FINAL_for_web.pdf

Florida Citizens: Financial Statements

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Facts + Statistics: Flood insurance
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Facts + Statistics: Hurricanes