A Firm Foundation: How Insurance Supports the Economy

A myriad of different programs in place across the United States provide insurance to high risk policyholders who may have difficulty obtaining coverage from the standard market. So called residual, shared or involuntary market programs make basic insurance coverage more readily available. Today, property insurance from the residual market is provided by Fair Access to Insurance Requirements (FAIR) Plans, Beach and Windstorm Plans, and two state-run insurance companies in Florida and Louisiana: Florida Citizens Property Insurance Company (CPIC) and Louisiana Citizens Property Insurance Corp. (Louisiana Citizens). Established in the late 1960s to ensure the continued provision of insurance in urban areas, FAIR Plans often provide property insurance in both urban and coastal areas, while Beach and Windstorm Plans cover predominantly wind-only risks in designated coastal areas. Hybrid plans, like Florida's and Louisiana’s plans, provide property insurance throughout those states. It is important to note that in addition to windstorm risk, these plans routinely cover a range of other exposures, such as vandalism and fire.

 

Insurance Provided By FAIR Plans By State, Fiscal Year 2018 (1)

 

  Number of policies    
State Habitational Commercial Total Exposure (2)
($000)
Direct premiums
written ($000)
California 119,570 3,980 123,550 $50,341,040 $82,271
Connecticut  1,804 62 1,866 342,145 2,560
Delaware 1,435 61 1,496 265,986 517
D.C. 188 20 208 66,416 200
Florida (3) 452,526 7,475 460,001 108,896,296 868,417
Georgia 1,709 553 2,262 2,391,323 20,805
Illinois 4,390 61 4,451 368,800 4,295
Indiana 1,183 34 1,217 142,000 2,533
Iowa 1,288 22 1,310 77,301 833
Kansas 15,307 160 15,467 970,470 8,384
Kentucky 8,419 357 8,776 471,336 5,039
Louisiana (3) 46,171 1,939 48,110 7,237,392 66,879
Maryland 1,250 47 1,297 363,040 885
Massachusetts 230,828 225 231,053 87,724,715 307,447
Michigan 18,040 251 18,291 2,340,600 13,124
Minnesota 5,079 37 5,116 223,627 3,547
Mississippi (4) 5,369 0 5,369 303,291 3,719
Missouri 2,488 70 2,558 168,794 1,703
New Jersey 11,911 314 12,225 1,687,616 7,737
New Mexico 10,897 263 11,160 80,651 4,929
New York 34,839 2,185 37,024 9,899,896 31,584
North Carolina 177,002 4,122 181,124 20,180,133 93,813
Ohio 17,309 344 17,653 4,365,000 15022
Oregon 1,948 56 2,004 259,991 831
Pennsylvania 13,484 1,088 14,572 1,440,383 6,206
Rhode Island 15,524 108 15,632 4,294,556 23,305
Texas (4) 104,165 0 104,165 15,285,508 95,882
Virginia 28,946 497 29,443 4,184,713 18,478
Washington 72 11 83 24,505 130
West Virginia 382 52 434 32,046 273
Wisconsin 5,481 90 5,571 335,711 2,767
Total 1,339,004 24,484 1,363,488 $324,765,281 $1,694,115

(1) Excludes the FAIR Plans of Arkansas and Hawaii.
(2) Exposure is the estimate of the aggregate value of all insurance in force in all FAIR Plans in all lines (except liability, where applicable, and crime) for 12 months ending September through December.
(3) Citizens Property Insurance Corp., which combined the FAIR and Beach Plans.
(4) The Mississippi and Texas FAIR Plans do not offer a commercial policy.

Source: Property Insurance Plans Service Office (PIPSO).

View Archived Tables

 

 

Insurance Provided By Beach And Windstorm Plans, Fiscal Year 2018 (1)

 

  Number of policies    
State Habitational Commercial Total Exposure (2)
($000)
Direct premiums
written ($000)
Alabama 20,910 55 20,965 $5,633,471 $26,471
Mississippi 20,660 236 20,896 3,284,222 35,425
North Carolina 199,392 9,799 209,191 75,011,039 329,955
South Carolina 21,055 341 21,396 6,828,763 41,197
Texas 202,710 9,898 212,608 58,041,760  395,552
Total 464,727 20,329 485,056 $148,799,255 $828,600

(1) The Florida and Louisiana Beach Plans merged with their FAIR Plans, see chart, Insurance Provided By FAIR Plans By State.
(2) Exposure is the estimate of the aggregate value of all insurance in force in each state’s Beach and Windstorm Plan in all lines (except liability, where applicable, and crime) for 12 months ending September through December.

Source: Property Insurance Plans Service Office (PIPSO).

View Archived Tables