Presentation to Disaster & Hurricane Preparedness Workshop History of Disasters in New York Korea Village Open Center Auditorium Tuesday, November 27, 2007 Flushing, New York
Presented by:
Jeanne M. Salvatore
Senior Vice President, Public Affairs & Consumer Spokesperson, Insurance Information Institute Jeannes@iii.org www.iii.org
Presentation Outline
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
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I.
Most of US Population & Property Has Major CAT Exposure
Is Anyplace Safe?
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History of Disasters
National Perspective
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
Wind/Hail/Flood5 2.8% Earthquakes 4 6.7% Winter Storms 7.8% Terrorism 7.7% Water Damage Civil Disorders 0.1% 6 0.4% Fire Tornadoes 2 2.3% Utility Disruption 24.5% 0.1%
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.
All Tropical
Cyclones 3 47.5% 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. 6
Source: Insurance Services Office (ISO)..
Top 11 Insured Property Losses in US ($2005)
$45 $40 $35 $30 $25 $20 $15 $10 $5 $0
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Eight of the 11 most expensive disasters is US history occurred since 2001
$20.7 $21.6 $16.5 $6.6 $7.4 $7.7 $10.3
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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)
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History of Disasters
A Short History of Catastrophes in New York
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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History of Disasters
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.
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Top Hurricanes to Hit NY
Hurricane Bob in 1991 115 million in losses, 170.2 million in $2006 Hurricane Floyd in 1999 35 million in losses, 42.4 million in $2006 Hurricane Frances, in 2004 55 million in losses, 58.7 in $2006 Hurricane Gloria, in 1985 172.5 million in losses, 323.2 $ in 2006 Note: All losses are insured losses Hurricane Isabel, in 2003 45 million in losses, 49.3 million in $2006 Hurricane Ivan, in 2004 20 million in losses 21 million in $2006 Hurricane Jeanne, in 2004 35 million in losses 37.4 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
“Great New England Hurricane” of 1938 a.k.a.“Long Island Express” caused severe damage through much of the Northeast. 600+ Deaths $308 million
Source: WeatherUnderground.com, accessed February 4, 2006.
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Track of “Great New England Hurricane” of 1938
“Great New England Hurricane” of 1938 a.k.a.“Long Island Express” caused severe damage through much of the Northeast. 600+ Deaths $308 million
Source: WeatherUnderground.com, accessed February 4, 2006.
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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.
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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
Source: WeatherUnderground.com, accessed May 31, 2006; NOAA loss & fatality figures.
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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
Source: WeatherUnderground.com, accessed May 31, 2006; NOAA loss & fatality figures.
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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
Source: WeatherUnderground.com, accessed May 31, 2006; NOAA loss & fatality figures.
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History of Disasters
Cost of insured Property in New York
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.
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Value of Insured Residential Coastal Exposure (2004, $ Billions)
Florida New York Massachusetts Texas New Jersey Connecticut Louisiana S. Carolina Maine Virginia North Carolina Alabama Georgia Delaware Rhode Island New Hampshire Mississippi Maryland $942.5 $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
$0
Source: AIR
$200
$400
$600
$800
$1,000
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Value of Insured Commercial Coastal Exposure (2004, $ Billions)
New York Florida Texas Massachusetts New Jersey Connecticut Louisiana S. Carolina Virginia Maine North Carolina Georgia Alabama Mississippi New Hampshire Delaware Rhode Island Maryland $1,389.6 $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
$0
Source: AIR
$200
$400
$600
$800
$1,000 $1,200 $1,400 $1,600
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Total Value of Insured Coastal Exposure (2004, $ Billions)
Florida New York Texas Massachusetts New Jersey Connecticut Louisiana S. Carolina Virginia Maine North Carolina Alabama Georgia Delaware New Hampshire Mississippi Rhode Island Maryland $1,937.3 $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
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
$1,000 $1,500 $2,000 $2,500
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$0
Source: AIR Worldwide
$500
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. 2. 3. 4. 5. Buy enough insurance Get the right type of policy Create a home inventory Hurricane-Proof your home 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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Version 3.0 just released
Handles larger files and images Third-party secure online storage Streamlined set-up process 33
Disaster Insurance Information Preparedness information covering hurricanes, tornadoes, earthquakes, floods, wildfires and terrorism 34
Evacuation video http://www.iii.org/static/video/mediaplayer/evacuation.wmv