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 [email protected] www.iii.org Presentation Outline I. 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

2 Most of US Population & Property Has Major CAT Exposure

Is Anyplace Safe?

3 History of Disasters

National Perspective Catastrophe losses ƒ Over the 20-year period from 1986 t9 2005, percentage of total catastrophe losses: ƒ Hurricanes and tropical storms - 47.5 percent ƒ Tornados – 24.5 percent ƒ Winter storms – 7.8 percent ƒ Terrorism – 7.7. percent ƒ Earthquakes – 6.7 percent ƒ Civil disorders, water damage, utility service disruption – less than one percent.

5 Inflation-Adjusted U.S. Insured Catastrophe Losses By Cause of Loss, 1986-2005¹

5 Wind/Hail/Flood Civil Disorders Water Damage 2.8% 0.1% 6 0.4% Fire Tornadoes2 Earthquakes4 2.3% Utility Disruption 24.5% 6.7% 0.1% Insured disaster losses Winter Storms 7.8% totaled $289.1 billion from 1984-2005 (in 2005 dollars). Terrorism Tropical systems accounted 7.7% for nearly half of all CAT losses from 1986-2005, up from 27.1% from 1984-2003.

All Tropical Cyclones3 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 6 Insurance Program. Includes wildland fires. 6 Source: Insurance Services Office (ISO).. Top 11 Insured Property Losses in US ($2005)

Eight of the 11 most $45 $40.6 $40 expensive disasters is US $35 history occurred since 2001 $30 $25 $20.7 $21.6 $20 $16.5 $ Billions $ $15 $10.3 $10 $6.6 $7.4 $7.7 $3.8 $4.8 $5.0 $5 $0 ) ) ) ) ) ) ) ) ) 5 05 994 1989 2004 2004 (20 ( a ke (1 ugo ( van a eanne (2004) H J e hqu r Attack (2001) an e Charley ( art ane ricane Rita (200ic an ic r rr ge E Hu Hurricane I rric urricane Wilm Hu H rid Hurr (2004 Hu h Hurricane AndrewHurricane (1992 Katrina (2005 rt No Sept. 11 Terro Note: 9/11 loss figure is for property claims only. 7 Sources: ISO/PCS; Insurance Information Institute. One of the Four Largest Catastrophes Occurred in NY There have been four megacatastrophes in the U.S. 1. (1992) 2. Northridge Earthquake (1994) 3. 9/11(2001) 4. (2005)

8 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 New York as one of the most hurricane-vulnerable areas in the U.S. based on the: ƒ Frequency and severity of storms, ƒ Quality of protections such as levees, ƒ Potential for flooding and erosion, ƒ Population at risk, ƒ Evacuation possibilities, ƒ Value of property and the state and local capabilities to respond.

10 History of Disasters ƒ 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.

11 Top Hurricanes to Hit NY

ƒ in 1991 ƒ, in 2003 115 million in losses, 45 million in losses, 170.2 million in $2006 49.3 million in $2006 ƒ in 1999 ƒ, in 2004 35 million in losses, 20 million in losses 42.4 million in $2006 21 million in $2006 ƒHurricane Frances, in 2004 ƒ, in 2004 55 million in losses, 35 million in losses 58.7 in $2006 37.4 million in $2006 ƒHurricane Gloria, in 1985 172.5 million in losses, 323.2 $ in 2006

Note: All losses are insured losses

12 Risk of Hurricanes In New York

ƒ 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. ƒ 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. ƒ 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.

13 Track of “Great Hurricane” of 1938

“Great New England Hurricane” of 1938 a.k.a.“Long Island Express” caused severe damage through much of the Northeast. y600+ Deaths y$308 million

14 Source: WeatherUnderground.com, accessed February 4, 2006. 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. y600+ Deaths y$308 million

15 Source: WeatherUnderground.com, accessed February 4, 2006. Storm Season of 1944: A Busy one for the Northeast

Three storms affected NY, NJ and New England in 1944, including “Great ” y46 deaths y$100 million damage y109mph gusts in Hartford

16 Source: WeatherUnderground.com, accessed May 31, 2006; NOAA loss & fatality figures. Storm Season of 1954: The Northeast Hit Again

NY/New England areas hit by Carol & Edna two weeks apart yCarol: 8-10 ft. floodwaters in Providence yEdna hits yCombined: 80 deaths, $501 million losses 17 Source: WeatherUnderground.com, accessed May 31, 2006; NOAA loss & fatality figures. Storm Season of 1960: Brenda & Donna Came to Visit

NY/New England areas were hit twice in 1960. yDonna killed 50, $387 million damage along East Coast

18 Source: WeatherUnderground.com, accessed May 31, 2006; NOAA loss & fatality figures. After a 25 Year Hiatus, Hurricane Gloria Hit in 1985

NY/New England areas were hit by Gloria 9/27/85 y8 deaths y$900 million damage

19 Source: WeatherUnderground.com, accessed May 31, 2006; NOAA loss & fatality figures. History of Disasters

Cost of insured Property in New York Coastal Development ƒ Between 1980 and 2003, the populations of coastal counties grew by 33 million people or 28 percent. ƒ 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.

21 Value of Insured Residential Coastal Exposure (2004, $ Billions)

Florida $942.5 New York $512.1 Massachusetts $306.6 Texas $302.2 $247.4 $205.5 Louisiana $88.0 S. Carolina $65.1 $64.5 $60.0 $60.0 Alabama $36.5 Georgia $29.7 Delaware $26.6 Rhode Island $25.9 $24.8 Mississippi $20.9 $5.4 $0 $200 $400 $600 $800 $1,000 Source: AIR 22 Value of Insured Commercial Coastal Exposure (2004, $ Billions)

New York $1,389.6 Florida $994.8 Texas $437.8 Massachusetts $355.8 New Jersey $258.4 Connecticut $199.4 Louisiana $121.3 S. Carolina $83.7 Virginia $69.7 Maine $52.6 North Carolina $45.3 Georgia $43.3 Alabama $39.4 Mississippi $23.8 New Hampshire $20.9 Delaware $19.9 Rhode Island $17.9 Maryland $6.7 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 Source: AIR 23 Total Value of Insured Coastal Exposure (2004, $ Billions)

Florida $1,937.3 New York $1,901.6 Texas $740.0 Massachusetts $662.4 New Jersey $505.8 Connecticut $404.9 Louisiana $209.3 S. Carolina $148.8 Virginia $129.7 Northeast states insured coastal Maine $117.2 exposure totals $3.73 trillion. North Carolina $105.3 Alabama $75.9 Georgia $73.0 With $1,901.6 billion in exposure Delaware $46.4 th nd New Hampshire $45.6 NY ranks 2 in US, 1 in the Mississippi $44.7 Northeast and in New England Rhode Island $43.8 Maryland $12.1 $0 $500 $1,000 $1,500 $2,000 $2,500 Source: AIR Worldwide 24 Level of Preparedness

ƒ 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. ƒ 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.

25 26 Education: Key to Surviving a Hurricane Key messages: ƒ It is not if a hurricane hits the Northeast, it is when. ƒ 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.

27 Five Major Hurricane Preparedness Tips for Residents 1. Buy enough insurance 2. Get the right type of policy 3. Create a home inventory 4. Hurricane-Proof your home 5. Have a disaster recovery plan (that includes pets!) **Plan ahead for a Catastrophe Deductible**

28 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.

29 30 31 32 Version 3.0 just released ƒHandles larger files and images ƒThird-party secure online storage ƒStreamlined set-up process33 Disaster Insurance Information ƒ Preparedness information covering hurricanes, tornadoes, Evacuation video earthquakes, floods, http://www.iii.org/static/video/mediaplayer/evacuation.wmv wildfires and terrorism34