Record-setting year for disasters to affect insurance industry's long-term view
The slew of natural disasters which battered various locations around the world this past year may cause a significant shift in homeowners insurance companies' risk models, according to a new report.
In the U.S., 2011 was the most expensive hurricane season in three years as well as one of the most active years for tornadoes in the last three decades, according to analysis by CoreLogic.
In addition, flooding, wildfires and earthquakes also caused severe damage in many parts of the country not known for those disasters, such as the August earthquake that hit Virginia.
"Weather-wise, it has certainly proven to be a memorable year in the United States and around the world," said Dr. Howard Botts, executive vice president and director of database development for CoreLogic Spatial Solutions. "Several major urban areas faced unexpected catastrophes in 2011, putting disaster readiness plans and emergency response teams to the test and causing severe damage in regions underprepared for unusual weather events."
The frequency of disasters around the country has also resulted in a record number of requests for federal assistance. The Insurance Information Institute says the number of disaster declarations issued had already set a new annual record in September.
Related Home Insurance Articles:
- Homes destroyed by Nevada wildfire May 23, 2012
- Researchers hope to better understand tornado damage May 22, 2012
- Total costs from Minneapolis tornado reach $80 million May 21, 2012
- Analysis shows more than $2B of insurance claims from Joplin tornado May 18, 2012
- Recovery continues for Michigan tornado victims May 17, 2012
