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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
The first quarter of 2017 was the costliest first quarter in terms of losses for the property/casualty insurance industry since 1994, the year of the Northridge, California earthquake, according to the Property Claim Services (PCS) division of Verisk Analytics. In the first quarter of 2017 insured catastrophe losses totaled $7.3 billion dollars, $2.3 billion higher than first-quarter 2016, with 13 events including hail and tornadoes that accounted for $4.4 billion of those losses. PCS noted that hail and tornado losses continued at a high level through the second quarter of 2017.
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 $25 million.
Top Five Catastrophes of 2016 By Insured Catastrophe Losses (1)
($ millions)
|
(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.
U.S. Tornado Count, 2016
Source: U.S. Department of Commerce, National Oceanic and Atmospheric Administration, National Weather Service.
U.S. Winter Storm Insured Loss Trends, 1980-2016
(2016 $ billions)
Source: © 2017 Munich Re, Geo Risks Research, NatCatSERVICE. As of February 2017.
U.S., total catastrophes
The Property Claim Services (PCS) division of Verisk Analytics defines a catastrophe as an event that causes $25 million or more in insured property losses and affects a significant number of property/casualty policyholders and insurers. The estimates in the following chart represent anticipated insured losses from catastrophes on an industrywide basis, reflecting the total net insurance payment for personal and commercial property lines of insurance covering fixed property, vehicles, boats, related-property items, business interruption and additional living expenses.
Estimated Insured Property Losses, U.S. Catastrophes, 2007-2016 (1)
($ billions)
|
(1) Includes catastrophes causing insured property losses of at least $25 million in 1997 dollars and affecting a significant number of policyholders and insurers. Excludes losses covered by the federally administered National Flood Insurance Program.
(2) Adjusted for inflation through 2016 by ISO using the GDP implicit price deflator.
Source: The Property Claim Services® (PCS®) unit of ISO®, a Verisk Analytics® company.
Top 10 Costliest Catastrophes, United States (1)
($ millions)
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(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: Property Claim Services® (PCS®), a Verisk Analytics® business.
Inflation-Adjusted U.S. Insured Catastrophe Losses By Cause Of Loss, 1997-2016 (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. 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: Property Claim Services (PCS)®, a unit of ISO®,a Verisk Analytics® business.
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 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.
