Hurricane season has begun and will peak between August and mid-September. Millions of residents living along the coastal regions of the Southeastern U.S., Long Island (N. Y.), and New England face the prospect of punishing storms over the next four months. The hurricanes already sport names like Alex and Danielle, Ivan and Nicole, Paula and Tomas, and Xavier and Zeke.
Faced with catastrophic losses from hurricanes and other tropical storms, insurers are exploring the securitized insurance-investment market as a promising additional source for claims payment. With a market for securitized products firmly established, loss information provided by advisory organizations is critical to successful investing in this new arena.
Insurance Services Office, Inc. (ISO) can assist you in your coverage of hurricanes with information on property damage losses and number of claims filed with insurers— including a break out of past storms, losses and claims data by date and state.
This fact sheet, compiled from data in ISO's Property Claim Services (PCS) database, highlights some of the more significant information on past hurricane damage that may be useful to you as background.
Experts in ISO's PCS unit can provide detailed analyses on losses of special interest to you.
ISO's PCS unit maintains the most comprehensive database in the property/casualty industry on property losses resulting from weather-related disasters.
INSURANCE SERVICES OFFICE, INC.
PROPERTY CLAIM SERVICES HURRICANE FACT SHEET
Hurricane Losses by Year (1993-97):
Number of Hurricanes and Estimated Insured Loss
(adjusted to 1997 dollars)***
|1997 — 3,||$60 million|
|1996 — 4,||$2 billion|
|1995 — 3,||$3.5 billion|
|1994 — 0|
|1993 — 1,||$33 million|
*** ISO can provide information on dollar amounts of hurricane losses and number of claims, broken down by date, quarter and state. ISO also can provide loss data on other natural disasters in the same format.
Number of Named Hurricanes (1993-97):
|1997 - 3||— Hurricanes Bill and Danny (July); Erika (September)|
|1996 - 4||— Hurricanes Bertha (July), Edouard, Fran and Hortense (September)|
|1995 - 3||— Hurricanes Erin (August), Marilyn (September) and Opal (October)|
|1993 - 1||— Hurricane Emily (August-September)|
Ten Costliest Hurricanes by Year and
Estimated Insured Loss (adjusted to 1997 dollars):
|Hurricane Andrew - August 1992||$17.7 billion|
|Hurricane Hugo - September 1989||$5.4 billion|
|Hurricane Opal - October 1995||$2.2 billion|
|Hurricane Iniki - September 1992||$1.8 billion|
|Hurricane Frederic - September 1979||$1.7 billion|
|Hurricane Fran - September 1996||$1.6 billion|
|Hurricane Alicia - August 1983||$1.1 billion|
|Hurricane Marilyn - September 1995||$920 million|
|Hurricane Elena - August 1985||$810 million|
|Hurricane Bob - August 1991||$730 million|
Risk Securitization Market:
|A) Catastrophe bonds (sales by insurers 1996-98)||$1.3 billion|
|B) Options traded on the Chicago Board of Trade (CBOT)||$80 million|
|C) Other catastrophe risk securities||$835 million|
Ten Most Destructive Hurricanes,
Categories 5 and 4, 1900-1996
(measured by Saffir-Simpson Hurricane Disaster-Potential Scale): ***
|Florida (Keys) - 1935||Category 5|
|Camille - 1969||Category 4|
|Andrew - 1992||Category 4|
|Florida (Keys)/So. Texas - 1919||Category 4|
|Florida - 1928||Category 4|
|Donna - 1960||Category 4|
|Texas (Galveston) - 1900||Category 4|
|Louisiana (Grand Isle) - 1909||Category 4|
|Louisiana (New Orleans) - 1915||Category 4|
|Carla - 1961||Category 4|
*** Saffir-Simpson Hurricane Disaster-Potential Scale classifies hurricanes on their intensity and damage potential under five categories, with Categories 5, 4 and 3 being the most destructive. The scale does not measure insured property losses.
Catastrophes by Year (1988-98):
Number of Catastrophes and Estimated Insured Loss
(adjusted to 1997 dollars) ***
|1998 (Q1)||10,$1 billion|
*** To insurers, a catastrophe is a single incident, or series of related incidents, that cause insured property losses totaling at least $25 million.