Insurers will pay $32B for weather-related losses in 2011
by MBJ Staff
Published: January 5,2012
ACROSS MISSISSIPPI — Insurance companies will pay more than $32 billion in claims to help people rebuild homes and businesses damaged or destroyed by natural disasters in 2011, a record year for federal disaster declarations, according to the Insurance Information Institute (I.I.I.).
“Catastrophes striking the United States in the first nine months of 2011 caused $32.6 billion in direct insured losses, nearly double the $18.6 billion in catastrophe-caused direct insured losses insurers generally incur over the first nine months of any given year,” said Dr. Robert Hartwig, CPCU, president of the I.I.I. and an economist, citing figures released earlier this month by ISO’s Property Claim Services. “The $32.6 billion figure doesn’t even include the significant insured losses which arose after the pre-Halloween snowstorm, which caused enormous damage to multiple states along the Atlantic seaboard. Coupled with other events in 2011’s fourth quarter, direct insured losses could exceed $35 billion this year.”
Despite the frequency and severity of 2011’s natural catastrophes in the U.S., policyholders’ surplus — insurers’ net worth measured according to Statutory Accounting Principles — fell only four percent to $538.6 billion as of September 30, 2011, as compared to $559.2 billion at year-end 2010.
“The policyholders’ surplus number is a sure sign that U.S. property/casualty insurers remain well-capitalized, and capable of paying future claims,” Dr. Hartwig stated.
The federal government declared on 99 separate occasions this year that a major disaster existed after a natural disaster had occurred, easily breaking the previous record (81), which was set in 2010, the I.I.I. said. The federal government’s designation makes federal funding available to individuals and businesses impacted adversely by the named disaster. The most recent declaration was on Dec. 22, 2011, and had its origins in the severe snowstorms and flooding which occurred in Alaska between Nov. 8-10, 2011. The 99 disaster declarations are nearly triple the average of 34 per year dating back to 1953.
Moreover, the federal National Oceanic and Atmospheric Administration (NOAA) announced that the U.S. was the site of 12 separate weather/climate disasters, each of which caused at least $1 billion in aggregate damage in 2011. The previous record, set in 2008, was nine, according to NOAA.
To date, the U.S. set a record with 12 separate billion-dollar weather/climate disasters in 2011, with an aggregate damage total of approximately $52 billion.
To sign up for Mississippi Business Daily Updates, click here.
One Response to “Insurers will pay $32B for weather-related losses in 2011”
Top Posts & Pages
- Warden who lives hundreds of miles from jail resigns
- Jail kitchen supervisor pleads guilty to stealing food
- BankPlus recognized for alternative program to payday lending
- Top 10 finalists chosen for C Spire Conerly Trophy
- (UPDATE) Gov. Bryant: $1.2 billion aluminum plant is a very exciting proposition for the state of Mississippi
- Analyst: KiOR Columbus plant may end up sold as scrap
- Ex-MDEQ leader Fisher joins Butler Snow
- State’s new banking chief Charlotte Corley has deep roots in the business
- Stricklin: Deer parasites don't affect quality of venison