Fact file: Mississippi hurricane insurance

June 2020

  • The costliest Mississippi hurricane in recent years was Hurricane Katrina, which caused nearly $14 billion in insured losses in the state in 2005 (about $18.3 billion in 2019 dollars). These loss statistics do not include flood damage covered under the federal government’s National Flood Insurance Program (NFIP). Standard homeowners policies typically do not cover flood damage.
  • Hurricane Katrina was among the deadliest in Mississippi history, with more than 250 lives lost in the state alone.
  • Hurricane Katrina was the costliest hurricane to hit the U.S. Mississippi was also severely impacted by Hurricane Harvey in 2017.
  • Hurricane Katrina resulted in $2.5 billion in flood insurance losses in Mississippi paid by the NFIP.
  • There were 62,996 flood insurance policies covered under the NFIP in Mississippi in 2018, down from 64,372 in 2017.
  • The number of people living in coastal areas in Mississippi increased from 2010 to 2015 by 18,713 people or 2.9 percent to 648,360, according to the U.S. Census Bureau.
  • In Mississippi, about 103,000 single-family homes were at risk in 2020 for storm surge damage from hurricanes up to Category 5 strength, according to CoreLogic, Inc. These homes would cost $20.5 billion to completely rebuild, including labor and materials.
  • The Mississippi Windstorm Underwriting Association (MWUA) was established by the state legislature in 1987 as a market of last resort to provide windstorm and hail insurance in the coastal areas of Mississippi. MWUA provides windstorm and hail coverage only in the coastal counties of George, Hancock, Harrison, Jackson, Pearl River, and Stone.
  • MWUA policies contain a hurricane deductible of 2 percent of the insured value of the home. The hurricane deductible is triggered by windstorm losses resulting from a named storm as declared by the National Hurricane Center of the National Weather Service and remains in effect until a tropical storm warning is over.
  • The MWUA had about 18,000 policies with an exposure of $2.8 billion in fiscal year 2019.

Top 10 Writers Of Commercial Insurance In Mississippi By Direct Premiums Written, 2019 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Travelers Companies Inc. $184,812 7.6%
2 Liberty Mutual 122,709 5.0
3 CNA 91,429 3.7
4 Nationwide Mutual Group 87,958 3.6
5 Chubb 85,120 3.5
6 Zurich 85,089 3.5
7 W. R. Berkley Corp. 84,175 3.4
8 American International Group (AIG) 73,295 3.0
9 Progressive 73,012 3.0
10 CGB Insurance Co. 71,796 2.9

(1) Before reinsurance transactions.

Source: NAIC data, sourced from S&P Global Market Intelligence, Insurance Information Institute.

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Top 10 Writers Of Homeowners Insurance In Mississippi By Direct Premiums Written, 2019 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm $267,334 26.1%
2 Southern Farm Bureau Casualty 160,754 15.7
3 Allstate Corp. 84,809 8.3
4 Nationwide Mutual Group 73,064 7.1
5 Liberty Mutual 72,961 7.1
6 USAA Insurance Group 49,237 4.8
7 Farmers Insurance Group 37,079 3.6
8 Alfa Mutual Group 36,851 3.6
9 Shelter Insurance 29,938 2.9
10 Travelers Companies Inc. 26,161 2.6

(1) Before reinsurance transactions.

Source: NAIC data, sourced from S&P Global Market Intelligence, Insurance Information Institute.

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Top 10 Writers Of Private Passenger Auto Insurance In Mississippi By Direct Premiums Written, 2019 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm $468,461 23.3%
2 Progressive 243,234 12.1
3 Southern Farm Bureau Casualty 237,144 11.8
4 Allstate Corp 149,744 7.5
5 Berkshire Hathaway Inc. 149,643 7.5
6 Liberty Mutual 147,025 7.3
7 USAA 114,609 5.7
8 Nationwide 92,671 4.6
9 Alfa Mutual Group 68,995 3.4
10 Shelter Insurance 66,958 3.3

(1) Before reinsurance transactions.

Source: NAIC data, sourced from S&P Global Market Intelligence, Insurance Information Institute.

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Top 10 Costliest Hurricanes In The United States (1)

($ millions)

        Estimated insured loss
Rank Date Location Hurricane Dollars when occurred In 2019 dollars (2)
1 Aug. 25-30, 2005 AL, FL, GA, LA, MS, TN Hurricane Katrina $41,100 $52,828
2 Sep. 19-22, 2017 PR, USVI Hurrican Maria (3) 25,000-30,000 26,100-31,300
3 Sep. 6-12, 2017 AL, FL, GA, NC, PR, SC, UV Hurricane Irma (3) 25,000-30,000 26,100-31,300
4 Aug. 25-Sep. 1, 2017 AL, LA, MS, NC, TN, TX Hurricane Harvey (3) 18,000-20,000 18,800-20,800
5 Oct. 28-31, 2012 CT, DC, DE, MA, MD, ME, NC, NH,
NJ, NY, OH, PA, RI, VA, VT, WV
Hurricane Sandy 18,750 21,065
6 Aug. 24-26, 1992 FL, LA Hurricane Andrew 15,500 25,867
7 Sep. 12-14, 2008 AR, IL, IN, KY, LA, MO, OH, PA, TX Hurricane Ike 12,500 20,861
8 Oct. 10-12, 2018 AL, FL, GA, MD, NC, SC, VA Hurricane Michael (3) 9,000-12,000 9,200-12,200
9 Oct. 24, 2005 FL Hurricane Wilma 10,300 13,239
10 Aug. 13-14, 2004 FL, NC, SC Hurricane Charley 7,475 9,906

(1) Property losses only. Excludes flood damage covered by the federally administered National Flood Insurance Program. Ranked on dollars when occurred. As of September 30, 2020.
(2) Adjusted for inflation through 2019 by the Insurance Information Institute using the GDP implicit price deflator.
(3) Insurance Information Institute estimate based on data from catastrophe risk modelers, reinsurance companies, the Property Claims Services unit of Verisk Analytics, the Federal Emergency Management Agency of the U.S. Department of Homeland Security, and the Florida Office of Insurance Regulation. These estimates are preliminary because the organizations involved periodically resurvey the events, and the severity of losses and other factors create a high level of uncertainty surrounding the ultimate loss figures.

Source: Insurance Information Institute, catastrophe risk modelers, reinsurance companies, U.S. Department of Homeland Security, the Florida Office of Insurance Regulation, the Property Claim Services® (PCS®) unit of ISO®, a Verisk Analytics® company, and the U.S. Bureau of Economic Analysis.

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Storm Surge Risk By State By Number Of Single-Family Homes and Reconstruction Value, 2020 (1)

 

    Number of single-family homes at risk by storm category (2)
Rank State Category 1 Category 2 Category 3 Category 4 Category 5
1 Florida 353,994 1,088,511 1,806,312 2,362,323 2,851,642
2 Louisiana 72,883 212,707 640,307 770,030 843,349
3 Texas 41,398 122,453 264,103 399,741 563,024
4 New Jersey 95,473 277,147 381,388 471,323 471,323 (3)
5 New York 76,805 228,069 351,937 467,787 467,787 (3)
6 Virginia 23,232 89,347 243,707 366,117 410,277
7 South Carolina 37,107 132,728 219,420 308,387 363,875
8 North Carolina 33,254 97,694 165,266 216,446 267,802
9 Georgia 9,378 54,470 113,068 152,882 164,504
10 Massachusetts 8,102 42,832 97,083 151,979 151,979 (3)
11 Maryland 16,091 59,214 98,757 126,589 126,589 (3)
12 Mississippi 5,740 25,385 56,768 90,023 102,596
13 Pennsylvania 847 21,378 58,921 85,794 85,794 (3)
14 Connecticut 6,708 27,921 46,186 67,433 67,433 (3)
15 Delaware 10,855 31,057 49,103 67,055 67,055 (3)
16 Alabama 5,203 15,841 27,769 40,287 51,929
17 Rhode Island 1,396 7,979 17,345 26,336 26,336 (3)
18 Maine 5,657 7,912 11,969 18,149 18,149 (3)
19 New Hampshire 193 4,069 7,074 9,336 9,336 (3)
  Total homes
potentially affected
804,316 2,546,714 4,656,483 6,198,017 7,110,779
    Reconstruction cost value of single-family homes at risk (2), (4) ($ millions)
Rank State Category 1 Category 2 Category 3 Category 4 Category 5
1 Florida $71,707.9 $224,088.9 $372,234.3 $483,618.4 $580,606.2
2 Louisiana 15,887.7 47,717.2 152,745.6 184,008.0 202,330.0
3 New York 30,410.9 95,248.1 146,867.2 196,107.2 196,107.2 (3)
4 New Jersey 27,523.2 84,974.9 119,707.6 150,599.6 150,599.5 (3)
5 Texas 7,467.3 22,579.6 51,408.9 81,181.5 113,419.1
6 Virginia 5,962.5 22,598.0 57,844.1 86,624.2 98,314.8
7 South Carolina 10,447.7 35,063.9 55,589.2 75,121.4 86,468.7
8 North Carolina 7,178.2 21,277.7 36,350.3 47,968.2 59,542.6
9 Massachusetts 2,306.8 12,658.0 29,179.0 47,309.5 47,309.5 (3)
10 Georgia 2,869.0 14,504.6 26,994.0 35,215.7 37,416.2
11 Maryland 3,878.3 14,151.3 23,657.9 30,518.8 30,518.8 (3)
12 Connecticut 2,344.5 9,635.7 15,669.6 22,538.4 22,538.4 (3)
13 Pennsylvania 193.8 5,120.6 14,596.0 21,349.8 21,349.8 (3)
14 Mississippi 1,175.2 5,247.4 11,573.3 18,024.1 20,467.4
15 Delaware 3,082.8 8,693.8 13,892.8 18,943.9 18,943.9 (3)
16 Alabama 965.3 2,972.1 5,112.2 7,360.8 9,449.8
17 Rhode Island 350.2 2,339.3 5,080.9 7,761.3 7,761.3 (3)
18 Maine 1,314.9 1,892.6 2,949.9 4,589.9 4,589.8 (3)
19 New Hampshire 35.2 713.9 1,434.1 2,038.9 2,038.9 (3)
  Total homes
potentially affected
$195,101.5 $631,477.6 $1,142,886.9 $1,520,879.6 $1,709,772.1

(1) The risk categories are cumulative and increase in value from Category 1 to Category 5. Category 1 represents the higher risk of damage from a weak hurricane; Category 5 includes Categories 1 to 4 and the low risk of damage from a Category 5 hurricane.
(2) Measured in units.
(3) Storm surge risk for Category 5 storms for homes on the northeastern Atlantic Coast is not shown due to the extremely low probability of a Category 5 storm affecting these areas.
(4) Represents the cost to completely rebuild including labor and materials by geographic location.

Source: CoreLogic®, a property data and analytics company.

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Other Resources

I.I.I. Facts & Stats: Flood Insurance

I.I.I. Facts & Stats: Hurricanes

I.I.I. Issues Updates: Hurricane and Windstorm Deductibles

Mississippi Windstorm Underwriting Association Website

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