Catastrophes

Infographic: Hurricane Deductibles

A printable version of the infographic can be downloaded here.

Residual market property plans – 2016

Executive summary

 

  • The exposure value of the residual property market in hurricane-exposed states continues its decline from the peak levels seen in 2011. Between 2011 and 2014, total exposure to loss in the plans fell by almost 30 percent to $639 billion. Policy counts in 2014—at around 2.8 million—are also down from their 2011 highs.

 

 

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The Northridge, CA, Earthquake 20 Years After: Facts, Figures and Perspectives

The Northridge, California, earthquake of 1994 was the costliest earthquake in U.S. history in terms of insured losses.

Background on: Wildfires

Overview

Fire plays an important role in the life of a forest, clearing away dead wood and undergrowth to make way for younger trees, but the risk wildfires pose to people and property is growing as more people move into forested areas once largely uninhabited. These areas, known as the Wildland-Urban Interface (WUI), contain about 44 million houses in the lower 48 states, according to the U.S. Forest Service.

Spotlight on: Flood insurance

Overview

Flooding is the most common and costly natural disaster in the United States, causing billions in economic losses each year.  According to the National Flood Insurance Program (NFIP), 90 percent of all natural disasters in the United States involve flooding.

Background on: Hurricane and windstorm deductibles

The Topic

After Hurricane Andrew in 1992, insurers realized that losses from hurricanes could be much higher than they had previously thought. Hurricane Katrina, in 2005, which cost insurers more than $41 billion at the time, confirmed their fears. After these extraordinary losses, reinsurance companies, insurers that share the cost of claims with primary companies, such as homeowners insurers, said that they could not assume so much risk and that primary companies must reduce their potential losses.

Background on: Earthquake insurance and risk

The topic

An earthquake is a sudden and rapid shaking of the earth caused by the breaking and shifting of rock beneath the earth’s surface. This shaking can sometimes trigger landslides, avalanches, flash floods, fires and tsunamis. Unlike other natural disasters such as hurricanes, there are no specific seasons for earthquakes.

Spotlight on: Catastrophes - Insurance issues

Overview

The term “catastrophe” in the property insurance industry denotes a natural or man-made disaster that is unusually severe. An event is designated a catastrophe by the industry when claims are expected to reach a certain dollar threshold, currently set at $25 million, and more than a certain number of policyholders and insurance companies are affected.

Background on: Climate change and insurance issues

The topic

There is now a consensus among the scientific community that the climate is changing, with potential risk to the global economy, ecology, and human health and well-being. But how much of this is due to natural phenomena and how much to the effects of human activity is a matter of debate. Also unknown is the extent to which weather patterns have already been affected. Any increase in damage and litigation over damage is likely to raise insurance company losses. What, then, are insurance companies doing to lessen the impact of global warming?

Facts + Statistics: Tornadoes and thunderstorms

Tornadoes

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