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Winter Storm Uri Losses in Texas Expected in $ 10B – $ 20B Series

Winter Storm Uri Losses in Texas Expected in $ 10B - $ 20B Series
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It is likely that the insured losses in Texas from Winter Storm Uri, which overwhelmed the state in mid-February, will climb in the range of 10 to 20 billion dollars, according to the disaster modelers and market analysts of the insurance industry.

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Uri losses could be ‘somewhat similar to Hurricane Harvey, which was a Category 4 hurricane that struck Texas and Louisiana in August 2017,’ according to S&P Global. However, the market intelligence organization said in a media release on February 26 that it was still “too early to accurately quantify the insured losses, given the complexity of the event.”

The agency for disaster models, Karen Clark & ​​Co., estimated the insured losses of the storm at about $ 18 billion. Hurricane Harvey caused about $ 19 billion in insured losses in Texas and $ 30 billion in the U.S., S&P Global noted.

AIR Worldwide said the losses in the Texas industry ‘are likely to exceed $ 10 billion’ and ‘estimate the average severity values ​​of $ 15,000 for residential risks and $ 30,000 for commercial risks’. However, the disaster risk modeling firm added that the $ 10 billion figure could rise significantly due to a number of factors. These factors may include a higher than expected claim rate among the risks affected by prolonged power outages, or the coverage of the service interruptions paid, greater than the expected consequences of demand demand, government intervention and whether claims for mold damage begin arises a significant source of loss. ”

In an article published by Bloomberg, Chuck Watson, a disaster model for Enki Research, estimates that losses due to the prolonged freezing and power outages in Texas could amount to $ 90 billion, with about $ 20 billion of the losses covered by insurance .

The winter storm Uri left millions of days without power in Texas, and extremely low temperatures froze pipes and caused them to burst. According to AIR, many places had their longest, continuously affected freezing point ever, with Waco as an example of one city in Texas that remained below freezing for 203 consecutive hours – 53 more than the previous record. At the highest point of the low temperatures, on February 15, the average temperature in Texas was only 12 ° Fahrenheit, or 6 ° lower than the average temperature in Alaska on the same day. ”

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In a report released on Feb. 19, “Potential Record Disaster Loss for Texas Insurers Due to Winter Storm Uri,” AM Best said it expects the biggest claims to Uri to stem from “the homeowners, commercial property and car lines of business. The rating agency also warned that a ‘significant’ contribution to the loss would be the ‘increase in demand for contractors and construction materials’.

In addition to damage to property outside of snow and ice in residential structures, claims may arise due to water damage and flooding in buildings due to frozen and broken water pipes. “Depending on the policy coverage conditions, homeowners’ insurance may also depend on hotel costs and additional accommodation costs for families in need of shelter while their homes are uninhabitable due to cold temperatures,” AM Best said.

The same types of property damage experienced by residential structures will also plague commercial property. In addition, commercial claims are likely to arise from businesses that have suffered losses due to the power outages, AM Best said. “Extensive power outages can cause losses not only for primary insurers but also for reinsurers,” AM Best added.

Due to the “increased dangers of traveling on slippery, icy streets, roads and highways in Texas, personal car insurers in Texas and other states are also likely to experience significant increases in claims due to an increase in accidents,” the rating agency noted. .

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The Texas Department of Insurance on February 26 called on insurers for information on claims stemming from the severe winter storm that hit the state on Feb. 11-19. March 31 is the first date for the first report of the data from Feb. 28. Subsequent reports should appear monthly at the end of each month, TDI said.

Homeowners / Farm Owners Multi-Concentration Companies in Texas
Classified according to 2019 Texas Homeowners / Farmers Owners Multiperil DPW as% of the total company homeowners / Farm Owners DPW
(Minimum 50% share in the company DPW consisting of Texas Homeowners / Farm Owners DPW)
($ thousands)
AMB # company name Texas USA Texas% of US
001767 Lloyds State Farm 1 900 767 1 900 767 100.0
003312 Texas Farmers Insurance Company 855,383 855,383 100.0
010678 Allstate Texas Lloyd’s 325,343 325,343 100.0
004359 Texas Farm Bureau Underwriters 263,150 263,150 100.0
000892 Texas Farm Bureau Mutual Insurance Co. 201,011 201,011 100.0
003566 Texas Chubb Lloyds Insurance Company 177 746 177 746 100.0
001753 Texas Leading Lloyds 86,139 86,139 100.0
001743 Travelers Lloyds of Texas Insurance Co. 85 095 85 095 100.0
011417 Texas Metropolitan Lloyds Ins Co. 76 479 76 479 100.0
012703 Texas FAIR Plan Association 53,217 53,217 100.0
012339 Auto Club Indemnity Company 142,033 142,056 100.0
012421 ASI Lloyds 227,903 243 342 93.7
013125 Homeowners of America Insurance Co. 149,755 168 858 88.7
022605 Allied Trust Insurance Company 69 850 87,797 79.6
010681 State National Insurance Company, Inc. 65 851 90,595 72.7
003333 Meridian Security Insurance Company 118,670 169 992 69.8
003652 Allstate Fire and Casualty Insurance Co. 118,054 193,154 61.1
022327 Clear Blue Insurance Company 87 876 147,163 59.7
012053 Safeco Insurance Company of Indiana 314 609 594,007 53.0
022321 Spinnaker Insurance Company 102 536 196,131 52.3
Source: AM Best Data and Research
High Concentration Commercial Multiperil Property Insurers in Texas
Texas CMP Property DPW was ranked as a% of total company CMP Property DPW in 2019
(Minimum 50% share in the company DPW consisting of Texas CMP Multiperil DPW)
($ thousands)
AMB # company name Texas USA Texas% of US
001767 Lloyds State Farm 70,626 70,626 100.0
001734 The Hanover Accident Company 29,003 29,003 100.0
002614 Hartford Lloyd’s Insurance Company 22,611 22,611 100.0
012570 Insurers Indemnity Lloyds 9,097 9,097 100.0
003297 Travelers Lloyds Insurance Company 8 926 8 926 100.0
012318 Utica Lloyd’s from Texas 8 375 8 375 100.0
003817 Hochheim Prairie Casualty Insurance Co. 5 073 5 073 100.0
001709 American Modern Lloyds Insurance Company 4,010 4,010 100.0
001876 Union Standard Lloyds 1 442 1 442 100.0
001775 United Fire Lloyds 1 147 1 147 100.0
011021 Samsung F & M Insurance Co., Ltd. USB 1 685 2,061 81.8
022328 Clear Blue Special Insurance Company 1 774 2,490 71.2
012472 ANPAC Louisiana Insurance Company 2 278 3 346 68.1
002422 Republic Underwriters Insurance Company 2,886 4,850 59.5
010611 Acceptance Compensation Insurance Company 9,663 16,412 58.9
011783 US Real Estate Insurance Company 1 250 2 146 58.2
Source: AM Best Data and Research
Motor Insurance Non-Fully Insured in Texas
100% of the 2019 Auto Physical Damage DPW in Texas
(Minimum $ 10 million in Texas Auto Physical Damage Damage DPW)
($ thousands)
AMB # company name Texas
003690 Progressive County Mutual Insurance Co. 1 541 401
022059 GEICO County Mutual Insurance Company 998 243
004097 Farmers Texas County Mutual Insurance Co. 626,143
012569 Liberty County Mutual Insurance Company 483,004
004682 Consumer County Mutual Insurance Co. 234 024
001758 Auto Club County Mutual Insurance Co. 181,176
003634 Leading County Mutual Insurance Company 171,212
000892 Texas Farm Bureau Mutual Insurance Co. 170,212
000764 Mutual Insurance Company Allstate County 130,682
010311 Home State County Mutual Insurance Co. 130 372
010346 Colonial County Mutual Insurance Company 118 096
012564 Germania Select Insurance Company 107,865
013850 Texas Farm Bureau Casualty Ins Co. 105 477
003382 Mutual Insurance Company in Southern County 101,923
010360 Old American County Mutual Fire Ins Co. 96,101
004359 Texas Farm Bureau Underwriters 92,464
003572 Infinity County Mutual Insurance Co. 74,194
002476 State Farm County Mutual Ins Co of Texas 55,056
002661 Mutual Insurance Company Redpoint County 52,124
004286 Mercury County Mutual Insurance Company 38,933
011417 Texas Metropolitan Lloyds Ins Co. 36,270
011055 Unitrin County Mutual Insurance Company 34,660
003817 Hochheim Prairie Casualty Insurance Co. 31,959
022111 Alinsco Insurance Company 31,272
003277 Texas Dairyland County Mutual Ins Co. 28,614
010445 Mutual Insurance Company in Hallmark County 25 235
012107 Farm Bureau County Mut Ins Co of Texas 24,936
010574 CEM Insurance Company 21,015
002779 Germania Fire & Casualty Company 20,148
010255 American National County Mutual Ins Co. 14,288
Source: AM Best Data and Research

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