Fact file: Louisiana hurricane insurance

June 2020

  • The costliest Louisiana hurricane ever was Hurricane Katrina, which caused nearly $25.4 billion in insured losses in Louisiana in 2005 (about $33.4 billion in 2019 dollars). These losses do not include flood damage covered under the federal government’s National Flood Insurance Program (NFIP).
  • Hurricane Katrina resulted in $13.1 billion in flood insurance losses in Louisiana paid by the NFIP.
  • Hurricane Katrina was the costliest hurricane to hit the U.S. (See chart below.)
  • Hurricane Katrina was also the deadliest hurricane in Louisiana’s history, with some 1,800 fatalities reported.
  • Standard homeowners policies typically do not cover flood damage. Flood insurance is covered by the federally managed National Flood Insurance Program, and private flood insurance is becoming increasingly available.
  • The number of flood insurance policies in force in Louisiana rose by 27 percent from 388,121 in 2005 to 494,370 in 2006, the year following hurricanes Katrina and Rita. There were 501,289 flood insurance policies in Louisiana in 2018 up from 498,271 in 2017.
  • In Louisiana, about 843,000 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 $202 billion to completely rebuild, including labor and materials.
  • The number of people living in coastal areas in Louisiana increased from 2010 to 2015 by 128,232 people or 4 percent to 3.7 million, according to U.S. Census Bureau estimates. About 79 percent of the total population of Louisiana lived in coastal counties in 2015.
  • Louisiana Citizens Property Insurance Corp. (Louisiana Citizens) was created by the state legislature in 2003 to oversee the state’s Coastal and FAIR (Fair Access to Insurance Requirements) plans. This state-run entity acts as a market of last resort for residential and commercial property insurance in Louisiana.
  • Citizens is working to transfer policies back to private insurers. It had 38,000 policies in force in 2019 down from 61,549 in 2017.

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

 

Rank Group/company Direct premiums written ($000) Market share
1 Travelers Companies Inc. $284,885 5.2%
2 CNA 238,615 4.3
3 Liberty Mutual 234,393 4.2
4 Chubb 225,259 4.1
5 Louisiana Workers' Comp Corp. 213,703 3.9
6 Zurich 205,864 3.7
7 American International Group (AIG) 200,084 3.6
8 Progressive 140,492 2.5
9 State Farm 134,479 2.4
10 Nationwide Mutual Group 126,127 2.3

(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 Louisiana By Direct Premiums Written, 2019 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm $497,373 25.6%
2 Allstate Corp. 212,629 10.9
3 USAA Insurance Group 121,149 6.2
4 Liberty Mutual 109,098 5.6
5 LA Farm Bureau Mutual Insurance Co. 92,586 4.8
6 UPC Insurance 78,799 4.1
7 FEDNAT 75,778 3.9
8 Progressive 75,518 3.9
9 TWIMG LLC 60,209 3.1
10 GeoVera Holdings 35,643 1.8

(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 Louisiana By Direct Premiums Written, 2019 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm $1,442,013 29.5%
2 Progressive 803,098 16.4
3 Berkshire Hathaway Inc. 571,942 11.7
4 Allstate Corp. 540,138 11.1
5 USAA Insurance Group 294,072 6.0
6 Southern Farm Bureau Casualty 244,193 5.0
7 Liberty Mutual 197,964 4.1
8 GoAuto Insurance Co. 163,080 3.3
9 National General Holdings Corp. 104,747 2.1
10 Shelter Insurance 69,821 1.4

(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 April 17,2020.
(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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Additional resources

Louisiana Citizens: Website

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