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 2017 (1)

 

  Number of policies    
State Habitational Commercial Total Exposure (2)
($000)
Direct premiums
written ($000)
California 120,520 3,995 124,515 $47,547,419 $82,387
Connecticut  2,065 69 2,134 404,154 2,993
Delaware 1,603 46 1,649 274,134 556
D.C. 217 31 248 71,955 210
Florida (3) 471,036 11,729 482,765 112,309,525 893,990
Georgia 19,276 672 19,948 2,599,265 22,054
Illinois 5,108 69 5,177 440,000 5,032
Indiana 1,405 36 1,441 169,973 1,544
Iowa 1,420 36 1,456 86,263 928
Kansas 15,955 144 16,099 1,001,116 8,622
Kentucky 9,229 387 9,616 497,000 5,715
Louisiana (3) 59,009 2,540 61,549 7,630,727 75,918
Maryland 1,511 58 1,569 407,738 996
Massachusetts 237,438 279 237,717 85,861,810 303,345
Michigan 18,300 271 18,571 2,299,527 15,442
Minnesota 5,584 38 5,622 754,500 3,985
Mississippi (4) 7,104 0 7,104 321,480 4,822
Missouri 2,833 75 2,908 181,280 1,742
New Jersey 13,245 336 13,581 1,876,469 8,646
New Mexico 11,202 283 11,485 82,518 5,046
New York 39,012 2,411 41,423 11,077,462 33,254
North Carolina 188,786 3,916 192,702 18,669,325 86,381
Ohio 19,616 409 20,025 4,806,000 17,042
Oregon 2,080 60 2,140 283,482 804
Pennsylvania 14,383 960 15,343 1,426,393 7,010
Rhode Island 16,702 126 16,828 4,362,173 23,994
Texas (4) 127,643 0 127,643 18,029,369 112,316
Virginia 30,838 501 31,339 4,361,224 19,100
Washington 67 11 78 21,487 121
West Virginia 421 48 469 34,050 286
Wisconsin 5,704 105 5,809 322,000 3,055
Total 1,449,312 29,641 1,478,953 $327,209,703 $1,747,336

(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).

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Insurance Provided By Beach And Windstorm Plans, Fiscal Year 2017 (1)

 

  Number of policies    
State Habitational Commercial Total Exposure (2)
($000)
Direct premiums
written ($000)
Alabama 24,335 68 24,403 $5,800,047 $28,304
Mississippi 26,133 483 26,616 3,959,890 42,457
North Carolina 229,801 11,008 240,809 76,697,787 345,027
South Carolina 30,421 495 30,916 7,844,971 48,829
Texas 231,633 11,010 242,643 65,023,810 423,075
Total 542,323 23,064 565,387 $159,326,505 $887,692

(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