pcs 2015 q1 cat review

PCS Q1 2015 Catastrophe Review | 1

Above and Below Average: PCS Q1 2015 Catastrophe Review

Catastrophe activity in the first quarter of 2015 reached $2.2 billion, according to Property

Claim Services® (PCS®). Total insured losses were roughly even with the first quarter of

2014, although the number of events designated grew from six to eight. For the fourth year

in a row, PCS did not designate any catastrophe evens in Canada. First-quarter activity

tends to account for a small portion of U.S. and Canadian catastrophe losses. The second

quarter, already upon us, brings with it the start of hurricane season, the annual gauntlet

that can pose the greatest threat to catastrophe team contingency plans.

Q1 2015 U.S. CATASTROPHE REVIEW

PCS designated eight catastrophe events in the first quarter of 2015, resulting in $2.2 bil-

lion in insured losses. Those results are slightly below the ten-year average (2006 to 2015)

of $2.5 billion in losses and modestly above the 6.7 events per first quarter.

Q1 PCS-Designated Events and Insured Losses

Source: PCS

0

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Q1 2015Q1 2014Q1 2013Q1 2012Q1 2011Q1 2010Q1 2009Q1 2008Q1 2007Q1 2006

Catastrophe losses Catastrophe events

$ M

illio

ns

01

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5

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The first quarters of 2006 and 2007 were quite calm — $1.5 billion and $1.3 billion,

respectively. However, 2008, 2009, and 2012 all topped $3 billion in insured losses from

PCS-designated catastrophe events, with 2013 coming close at $2.8 billion. And 2015

matches the result from the first quarter of 2011 and last year as well. This shows the

unpredictability of first-quarter activity, in which winter storm, hail, and wind events can

cause significant losses.

Last year, the polar vortex was responsible for the bulk of first-quarter losses, accounting

for more than $1.5 billion across 17 states. This year, one event represented more than half

of all insured losses, and only two events entered the PCS resurvey process.

Twenty-four states were affected by first-quarter catastrophe activity, up from 19 last

year. Record levels of snow in Massachusetts caused the state to be the hardest hit in this

first quarter of 2015, resulting in insured losses from PCS-designated events of nearly

$600 million, followed by New York at $370 million (both estimates are subject to future

resurveys). Last year, Georgia had the largest first-quarter total from PCS-designated

events: $318 million.

Massachusetts $600 million

New York $370 million

Tennessee $173 million

Virginia $160 million

Pennsylvania $140 million

Maryland $130 million

New Jersey $120 million

Connecticut $80 million

Kentucky $70 million

Rhode Island $70 million

Source: PCS

Top Ten Catastrophe-Affected States in Q1 2015


Personal losses accounted for 79 percent of first-quarter activity ($1.8 billion), followed by

commercial losses at 20 percent and vehicle losses at 1 percent. Last year, personal losses

accounted for 75 percent of first-quarter activity, followed by commercial at 23 percent

and vehicle at 2 percent.

Auto

Commercial

Personal

1%

79%20%

Q1 2015 Losses from PCS-Designated Events by Category

Source: PCS

Q1 2015 CANADIAN CATASTROPHE REVIEW

PCS did not declare any catastrophe events in Canada in the first quarter of 2015, making

it the fourth catastrophe-free first quarter in a row for the country. In 2009, 2010, and

2011, only one catastrophe event occurred in each first quarter. The last PCS-designated

catastrophe event in Canada occurred in November 2014, a wind and thunderstorm event

that caused C$81 million in losses, affecting Ontario and Quebec.

© Insurance Services Office, Inc., 2015. ISO, the ISO logo, Verisk Analytics, and the Verisk Analytics logo are registered trademarks and Verisk, Verisk Insurance Solutions, and the Verisk Insurance Solutions logo are trademarks of Insurance Services Office, Inc. Property Claim Services and PCS are registered trademarks of ISO Services, Inc. AIR Worldwide and the AIR Worldwide logo are registered trademarks of AIR Worldwide Corporation. Xactware is a registered trademark of Xactware Solutions, Inc. All other product or corporate names are trademarks or registered trademarks of their respective companies. z1

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Contact PCSFor more information about PCS and to get started with U.S. and Canadian catastrophe data, please contact:

Joe LouwagieAssistant Vice President+1 201 469 [email protected]

Ted GregoryOperations Manager+1 201 469 [email protected]

Don HahnGlobal Account Executive+1 201 469 [email protected]

pcs 2015 q1 cat review

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