Facts + Statistics: U.S. catastrophes

2016 natural catastrophes

Insured losses due to natural disasters in the United States in 2016 totaled $23.8 billion, according to Munich Re, more than the $16.1 billion total for 2015. Severe thunderstorms losses, at $14 billion, accounted for about 60 percent of the 2016 insured losses. Floods and flash floods accounted for $4.3 billion in insured losses in 2016, and tropical cyclones accounted for $3.5 billion in insured losses. Winter storms and cold waves caused $1 billion in insured losses in 2016. Wildfires, heat waves and drought produced $1 billion in insured losses in 2016.

2016 and 2017 natural and man-made catastrophes

In the first nine months of 2017, the Property Claim Services (PCS) division of Verisk Analytics estimates that direct insured property losses from catastrophes striking the United States were between $36 billion and $40 billion. However, since the three major catastrophes in the third quarter were so large and occurred so close in time to each other, many claims from those events have not been closed. Therefore these ranges are not final.

Property Claim Services (PCS®), a Verisk Analytics® business, defines a catastrophe as an event that causes $25 million or more in insured property losses and affects a significant number of property/casualty (P/C) policyholders and insurers. PCS estimates represent anticipated insured losses from natural and man-made catastrophes on an industrywide basis, reflecting the total net insurance payment for personal and commercial property lines of insurance covering fixed property; vehicles, boats; related-property items; business interruption; and additional living expenses. They exclude loss adjustment expenses. P/C insurance industry catastrophes losses in the United States rose 46 percent to $20.9 billion in 2016 from $15.2 billion in 2015, according to PCS. The number of catastrophes rose to 42 in 2016 from 39 in 2015, the highest number of catastrophes for years with an industry loss event threshold of $25 million.

Natural Catastrophe Losses In The United States, 2016

(Based on perils)

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Top Five Catastrophes of 2016 By Insured Catastrophe Losses (1)

($ millions)

Rank	Date	States	Event	Estimated insured loss
1	Apr. 10 - 15	FL, TX	Wind and thunderstorm	$2,995.1
2	Mar. 23	TX	Wind and thunderstorm	1,688.5
3	Apr. 29 - May 3	AR, GA, IL, IN, MD, MO, NC, OK, TX, VA, WV	Wind and thunderstorm	1,187.0
4	Aug. 11 - 15	LA, MS	Wind and thunderstorm	1,058.9
5	Mar. 17 - 18	AL, AR, FL, LA, MS, TX	Wind and thunderstorm	920.1

(1) Includes catastrophes causing insured property losses of at least $25 million in 1997 dollars and affecting a significant number of policyholders and insurers. Does not include losses covered by the federally administered National Flood Insurance Program. As of October 20 excluding Hurricane Matthew.

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

Below are charts from Munich Re, which include flood insurance losses in its calculations. The reinsurer estimated insured natural catastrophe losses in the United States for 2016 at $23.8 billion.

Loss Events in the U.S. 1980-2016

(Number of relevant events by peril)

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Loss Events in the U.S. 1980-2016

(Overall and insured losses)

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Loss Events in the U.S. 1980-2016

(Overall losses: nominal, inflation adjusted, and normalized)

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Convective storm events* in the U.S. 1980-2016

(Overall and insured losses)

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Convective storm events* in the U.S. 1980-2016

(Overall losses: nominal, inflation adjusted, and normalized)

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Tropical storms and hurricanes in the U.S. 1980-2015

(Insured property losses per state)

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Tropical storms and hurricanes in the North Atlantic, 1980-2015

(Number of relevant events)

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Tropical storms and hurricanes in the North Atlantic, 1980-2015

(Overall and insured losses)

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Tropical storms and hurricanes in the North Atlantic, 1980-2015

(Insured losses)

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Tropical storms and hurricanes in the North Atlantic, 1980-2015

(Overall losses: nominal, inflation adjusted, and normalized)

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Natural Catastrophe Losses In The United States, 2006-2015

(Based on perils)

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Significant Natural Catastrophes In The United States, 2015

(Five costliest events ordered by overall losses)

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U.S. Tornado Count, 2017

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Source: U.S. Department of Commerce, National Oceanic and Atmospheric Administration, National Weather Service.

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U.S. Winter Storm Insured Loss Trends, 1980-2016

(2016 $ billions)

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U.S., total catastrophes

The Property Claim Services (PCS) division of Verisk Analytics defines a catastrophe as an event that causes $25 million or more in insured property losses and affects a significant number of property/casualty policyholders and insurers. The estimates in the following chart represent anticipated insured losses from catastrophes on an industrywide basis, reflecting the total net insurance payment for personal and commercial property lines of insurance covering fixed property, vehicles, boats, related-property items, business interruption and additional living expenses.

Estimated Insured Property Losses, U.S. Catastrophes, 2007-2016 (1)

Year	Number of catastrophes	Number of claims (millions)	Dollars when occurred ($ billions)	In 2016 dollars (2) ($ billions)
2007	23	1.2	$6.7	$7.7
2008	36	4.1	27.0	30.4
2009	27	2.2	10.5	11.8
2010	33	2.4	14.3	15.8
2011	30	4.9	33.6	36.3
2012	26	4.0	35.0	37.0
2013	28	1.8	12.9	13.4
2014	31	2.1	15.5	15.8
2015	39	2.0	15.2	15.4
2016	42	3.0	21.7	21.7

(1) Includes catastrophes causing insured property losses of at least $25 million in 1997 dollars and affecting a significant number of policyholders and insurers. Excludes losses covered by the federally administered National Flood Insurance Program.
(2) 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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Top 10 Costliest Catastrophes, United States (1)

($ millions)

			Estimated insured property losses
Rank	Date	Peril	Dollars when occurred	In 2016 dollars (2)
1	Aug. 2005	Hurricane Katrina	$ 41,100	$ 49,793
2	Sep. 2001	Fire, Explosion: World Trade Center, Pentagon terrorist attacks	18,779	24,987
3	Aug. 1992	Hurricane Andrew	15,500	24,478
4	Oct. 2012	Hurricane Sandy	18,750	19,860
5	Jan. 1994	Northridge, CA earthquake	12,500	18,880
6	Sep. 2008	Hurricane Ike	12,500	14,036
7	Oct. 2005	Hurricane Wilma	10,300	12,479
8	Aug. 2004	Hurricane Charley	7,475	9,348
9	Sep. 2004	Hurricane Ivan	7,110	8,891
10	Apr. 2011	Flooding, hail and wind including the tornadoes that struck Tuscaloosa and other locations	7,300	7,875

(1) Property losses only. Excludes flood damage covered by the federally administered National Flood Insurance Program.
(2) 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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Inflation-Adjusted U.S. Insured Catastrophe Losses By Cause Of Loss, 1997-2016 (1)

(2016 $ billions)

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(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. Does not include flood damage covered by the federally administered National Flood Insurance Program.
(2) Includes other wind, hail, and/or flood losses associated with catastrophes involving tornadoes.
(3) Includes wildland fires.
(4) Includes losses from civil disorders, water damage, utility service disruptions, and any workers compensation catastrophes generating losses in excess of PCS's threshold after adjusting for inflation.

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

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U.S. Insured Catastrophe Losses, 1989-2016

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2016 catastrophes

Texas had the costliest insured catastrophe losses in 2016, $8.0 billion, followed by Colorado with $1.5 billion in losses and Louisiana with $1.2 billion in losses, according to Property Claim Services®, a unit of ISO®, a Verisk Analytics® business.
North Carolina ranked fourth with $972 million in insured losses, followed by Florida with $885 million in losses.
The five states with the costliest insured disasters in 2016 had a total of $12.5 billion in insured losses, about 60 percent of total U.S. losses of $21 billion.

Top Five States By Insured Catastrophe Losses, 2016 (1)

($ millions)

Rank	State	Estimated insured losses
1	Texas	$8,025.3
2	Colorado	1,467.8
3	Louisiana	1,230.3
4	Florida	1,122.0
5	Tennessee	1,118.6

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

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

(2016 $ billions)

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

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