Texas Weather Losses

Updates:

December 2011

2011: Weather by the Billions

Beaman Floyd: Weather and insurance

TCAIS Insider: Hurricane Season Ends – In Texas it Was the Calm During & After the Storm

October 2011

2011 Sets New Record for Federal Disaster Declarations

April 2011

Texas wildfires: why this season is one of the worst in state history

‘Above Average’ 2011 Atlantic Hurricane Season Forecast

National Weather Service Confirms 4 Tornadoes Hit North Texas

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Texas has the most severe weather in the country. In fact, Texas has exposure to nine different types of natural disasters – the most among any state in the country.

Texas insurers continue to prepare for unpredictable weather losses. During “good weather” years with fewer claims, insurers reserve consumer premiums to prepare for future catastrophes. What some see as “profits” can be quickly wiped out, and the state’s entire insurance system destabilized.

In 2008, Texas led the nation in catastrophic losses by a wide margin with more than $10 billion – 5 times more losses than the next closest state. While Hurricane Ike has become the costliest storm to ever hit Texas, severe thunderstorms created the majority of the state’s weather catastrophes with damaging winds and hail.

Because of the loss risk in our state, providing a regulatory structure that encourages companies to do business in Texas is critical. Reforms passed in 2003 have stabilized or lowered homeowners premiums for most Texans even as home values have increased substantially; attracted 29 new homeowners insurance companies to Texas; and increased choices and availability of coverage for consumers.

Legislative and regulatory policies moving forward should continue this trend and focus on expanding insurance choice and availability in our state.

A strong, competitive insurance marketplace, within a regulatory framework that focuses on solvency, consumer education, and consumer protection from fraud and unfair practices, serves the interests of consumers, insurers and the overall Texas economy that relies on available, affordable insurance.

Download the USA Weather Chart – showing Texas has the most severe weather in the country – with exposure to nine different types of natural disasters – the most among any state in the country.