presentation to disaster & hurricane preparedness workshop history of disasters in new york...

Presentation to Disaster & Hurricane Preparedness WorkshopHistory of Disasters in New York

Korea Village Open Center AuditoriumTuesday, November 27, 2007

Flushing, New York

Presented by:

Jeanne M. SalvatoreSenior Vice President, Public Affairs & Consumer

Spokesperson, Insurance Information Institute

[email protected]

2

Presentation Outline

I. History of Disasters in New York

- National Perspective

- Local History

- Cost of Insured Property

I. Level of Preparedness

II. Key Disaster Preparedness Actions

III. I.I.I. Resources

3

Most of US Population & Property Has Major CAT Exposure

Is Anyplace Safe?

History of Disasters

National Perspective

5

Catastrophe losses

Over the 20-year period from 1986 t9 2005, percentage of total catastrophe losses: Hurricanes and tropical storms - 47.5 percent Tornados – 24.5 percent Winter storms – 7.8 percent Terrorism – 7.7. percent Earthquakes – 6.7 percent Civil disorders, water damage, utility service

disruption – less than one percent.

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Inflation-Adjusted U.S. Insured Catastrophe Losses By Cause of Loss,

1986-2005¹

Utility Disruption0.1%

Terrorism7.7%

All Tropical

Cyclones3

47.5%

Tornadoes2

24.5%

Water Damage0.1%

Civil Disorders0.4%

Fire6

2.3%

Wind/Hail/Flood5

2.8%

Earthquakes4

6.7%

Winter Storms7.8%

Source: Insurance Services Office (ISO)..

1 Catastrophes are all events causing direct insured losses to property of $25 million or more in 2005 dollars. Catastrophe threshold changed from $5 million to $25 million beginning in 1997. Adjusted for inflation by the III.2 Excludes snow. 3 Includes hurricanes and tropical storms. 4 Includes other geologic events such as volcanic eruptions and other earth movement. 5 Does not include flood damage covered by the federally administered National Flood Insurance Program. 6 Includes wildland fires.

Insured disaster losses totaled $289.1 billion from

1984-2005 (in 2005 dollars). Tropical systems accounted for nearly half of all CAT losses from 1986-2005, up

from 27.1% from 1984-2003.

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Top 11 Insured PropertyLosses in US ($2005)

$3.8 $4.8 $5.0 $6.6 $7.4 $7.7$10.3

$16.5$20.7 $21.6

$40.6

$0$5

$10$15$20$25$30$35$40$45

Hurrica

ne Jea

nne (20

04)

Hurrica

ne Fra

nces (

2004

)

Hurrica

ne Rita

(200

5)

Hurrica

ne Hug

o (19

89)

Hurrica

ne Iva

n (200

4)

Hurrica

ne Char

ley (2

004)

Hurrica

ne Wilm

a (20

05)

North

ridge

Ear

thquak

e (19

94)

Sept.

11 T

erro

r Atta

ck (2

001)

Hurrica

ne Andr

ew (1

992)

Hurrica

ne Kat

rina (

2005

)

$ B

illi

ons

Note: 9/11 loss figure is for property claims only. Sources: ISO/PCS; Insurance Information Institute.

Eight of the 11 most expensive disasters is US

history occurred since 2001

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One of the Four Largest Catastrophes Occurred in NY

There have been four megacatastrophes in the U.S.

1. Hurricane Andrew (1992)

2. Northridge Earthquake (1994)

3. 9/11(2001)

4. Hurricane Katrina (2005)


A Short History of Catastrophes in New York

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Risk of Hurricanes In New York A study by the International Hurricane Research

Center named Eastern Long Island New York as one of the most hurricane-vulnerable areas in the U.S. based on the:

Frequency and severity of storms, Quality of protections such as levees, Potential for flooding and erosion, Population at risk, Evacuation possibilities, Value of property and the state and local

capabilities to respond.

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The worst catastrophe to affect NY was the September 11 World Trade Center bombing, which caused $18.8 billion in insured damages in 2001 or 21.3 billion in 2006 dollars.

12

Top Hurricanes to Hit NYHurricane Bob in 1991115 million in losses, 170.2 million in $2006Hurricane Floyd in 199935 million in losses, 42.4 million in $2006Hurricane Frances, in 200455 million in losses, 58.7 in $2006Hurricane Gloria, in 1985172.5 million in losses, 323.2 $ in 2006

Note: All losses are insured losses

Hurricane Isabel, in 200345 million in losses,49.3 million in $2006Hurricane Ivan, in 200420 million in losses21 million in $2006Hurricane Jeanne, in 200435 million in losses37.4 million in $2006

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Risk of Hurricanes In New York From 1980 to 2005, New York State was hit by 5

catastrophic hurricanes which caused $477 million in insured property damage when they occurred or $702 million in 2006 dollars.

The largest was 1985’s Hurricane Gloria, which caused $172.5 million dollars in insured losses when it occurred and $323.2 million in 2006 dollars.

The next largest was Hurricane Bob in 1991 which caused $115 million in damages to NY when it occurred or $170.2 million in 2006 dollars.

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Track of “Great New England Hurricane” of 1938

Source: WeatherUnderground.com, accessed February 4, 2006.

“Great New England Hurricane” of 1938 a.k.a.“Long Island

Express” caused severe damage through much of

the Northeast.

600+ Deaths

$308 million

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Track of “Great New England Hurricane” of 1938

Source: WeatherUnderground.com, accessed February 4, 2006.

“Great New England Hurricane” of 1938 a.k.a.“Long Island

Express” caused severe damage through much of

the Northeast.

600+ Deaths

$308 million

16

Storm Season of 1944:A Busy one for the Northeast

Three storms affected NY, NJ and New England in 1944, including “Great

Atlantic Hurricane”

46 deaths

$100 million damage

109mph gusts in Hartford

Source: WeatherUnderground.com, accessed May 31, 2006; NOAA loss & fatality figures.

17

Storm Season of 1954:The Northeast Hit Again

NY/New England areas hit by Carol & Edna two

weeks apart

Carol: 8-10 ft. floodwaters in

Providence

Edna hits Cape Cod

Combined: 80 deaths, $501 million losses


18

Storm Season of 1960:Brenda & Donna Came to Visit

NY/New England areas were hit twice in 1960.

Donna killed 50, $387 million damage along East Coast


19

After a 25 Year Hiatus, Hurricane Gloria Hit in 1985


NY/New England areas were hit by Gloria 9/27/85

8 deaths

$900 million damage


Cost of insured Property in New York

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Coastal Development

Between 1980 and 2003, the populations of coastal counties grew by 33 million people or 28 percent.

Exposure to windstorms and high property values combine to make Florida the state with the highest potential for losses and New York’s Long Island the second highest.

22

Value of Insured Residential Coastal Exposure (2004, $ Billions)

$512.1$306.6$302.2

$247.4$205.5

$88.0$65.1$64.5$60.0$60.0

$36.5$29.7$26.6$25.9$24.8$20.9

$5.4

$942.5

$0 $200 $400 $600 $800 $1,000

FloridaNew York

MassachusettsTexas

New JerseyConnecticut

LouisianaS. Carolina

MaineVirginia

North CarolinaAlabamaGeorgia

DelawareRhode Island

New HampshireMississippiMaryland

Source: AIR

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Value of Insured Commercial Coastal Exposure (2004, $ Billions)

$994.8$437.8

$355.8$258.4

$199.4$121.3

$83.7$69.7

$52.6$45.3$43.3$39.4

$23.8$20.9$19.9$17.9$6.7

$1,389.6

$0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600

New YorkFlorida

TexasMassachusetts



VirginiaMaine

North CarolinaGeorgia

AlabamaMississippi

New HampshireDelaware

Rhode IslandMaryland

Source: AIR

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Total Value of Insured Coastal Exposure (2004, $ Billions)

$1,901.6$740.0

$662.4$505.8

$404.9$209.3

$148.8$129.7$117.2$105.3

$75.9$73.0

$46.4$45.6$44.7$43.8

$12.1

$1,937.3

$0 $500 $1,000 $1,500 $2,000 $2,500

FloridaNew York

TexasMassachusetts



VirginiaMaine

North CarolinaAlabamaGeorgia

DelawareNew Hampshire

MississippiRhode Island

Maryland

Source: AIR Worldwide

Northeast states insured coastal exposure totals $3.73 trillion.

With $1,901.6 billion in exposure NY ranks 2th in US, 1nd in the

Northeast and in New England

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Level of Preparedness In 2006, following a light hurricane season, the

I.I.I. commissioned a survey from Opinion Research Corporation and found that 25 percent of residents in the Northeast felt that their home was likely to be damaged by a hurricane.

In terms of preparedness, coastal residents from Maine to Texas on NOT prepared. Only 20 percent have taken measures to protect their homes from a natural disaster and only 14 percent reported that they had flood insurance.

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Education: Key to Surviving a Hurricane

Key messages: It is not if a hurricane hits the Northeast, it

is when. Coastal residents and business owners who

prepare for a hurricane will be more likely to survive a disaster. This will result in less injuries, deaths and property damage.

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Five Major Hurricane Preparedness Tips for Residents

1. Buy enough insurance

2. Get the right type of policy

3. Create a home inventory

4. Hurricane-Proof your home

5. Have a disaster recovery plan (that includes pets!)

**Plan ahead for a Catastrophe Deductible**

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Hurricane Preparedness Tips for Businesses

1. Develop a Disaster Recovery Plan

2. Review your insurance plan before there is a disaster.

I.I.I. offers detailed steps for small business owners.

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Streamlined set-up process

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Disaster Insurance Information Preparedness information covering hurricanes, tornadoes, earthquakes, floods, wildfires and terrorism

Evacuation video http://www.iii.org/static/video/mediaplayer/evacuation.wmv

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