Fact file: Louisiana hurricane insurance

 

  • The costliest Louisiana hurricane ever was Hurricane Katrina, which caused nearly $25.4 billion in insured losses in Louisiana in 2005 (about $31.0 billion in 2016 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.)
  • 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 452,823 flood insurance policies in Louisiana in 2015 down from 472,542 in 2014.
  • Hurricane Katrina was also the deadliest hurricane in Louisiana’s history, with some 1,800 fatalities reported.
  • The total value of insured coastal property in Louisiana totaled $293.5 billion in 2013, accounting for 36 percent of the state’s total insured property exposure, according to an analysis by AIR Worldwide.
  • As a result of the devastating impact of Hurricane Katrina, between 2004 and 2007 the total insured value of coastal properties in Louisiana grew at the lowest compound average annual rate of all coastal states (just over 2 percent). Still, in 2007 Louisiana ranked seventh among states in terms of the total value of insured coastal property.  
  • 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 104,084 policies in force for fiscal year 2015. Its exposure to loss—insured value of all properties—was almost $13.9 billion for fiscal year 2015.
  • Louisiana Citizens was the state’s twenty-ninth largest homeowners insurance company with a 0.8 percent market share in 2016, 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, 2016 (1)

Rank Group/company Direct premiums written ($000) Market share
1 Travelers Companies Inc. $276,661 5.5%
2 American International Group (AIG) 252,598 5.1
3 Liberty Mutual  233,745 4.7
4 CNA Financial Corp. 214,755 4.3
5 Zurich Insurance Group (2) 212,565 4.3
6 Chubb Ltd.  196,911 3.9
7 Louisiana Workers' Compensation Corp. 188,584 3.8
8 State Farm Mutual Automobile Ins. 137,506 2.8
9 Nationwide Mutual Group 110,586 2.2
10 AmTrust Financial Services  96,980 1.9

(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 Louisiana By Direct Premiums Written, 2016 (1)

Rank Group/company Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $512,993 27.7%
2 Allstate Corp. 220,918 11.9
3 Liberty Mutual 131,157 7.1
4 USAA Insurance Group 102,525 5.5
5 Louisiana Farm Bureau Mutual Insurance Co. 94,058 5.1
6 Progressive Corp. 71,705 3.9
7 United Insurance Holdings 54,275 2.9
8 Lighthouse Property Insurance Corp. 37,812 2.0
9 Farmers Insurance Group of Companies (2) 34,153 1.8
10 Chubb Ltd. 33,715 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, 2016 (1)

Rank Group/company Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Ins. $1,415,980 34.2%
2 Progressive Corp.  555,453 13.4
3 Allstate Corp. 478,880 11.6
4 Berkshire Hathaway Inc.  369,492 8.9
5 Liberty Mutual 239,773 5.8
6 USAA Insurance Group  215,092 5.2
7 Southern Farm Bureau Casualty Insurance Group 209,698 5.1
8 GoAuto Insurance Co. 111,238 2.7
9 National General Holdings Corp. 90,574 2.2
10 Safeway Financial Holding Co.  60,758 1.5

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

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Additional resources

Louisiana Citizens: Website

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