Sorry, you need to enable JavaScript to visit this website.

Historic Carolina Hurricane In 1989 Ushered In New Era of Catastrophic Storms

SPONSORED BY
INSURANCE INFORMATION INSTITUTE
New York Press Office: (212) 346-5500; media@iii.org

NEW YORK, August 23, 2011

— While the path of Hurricane Irene is uncertain this week, one possible target is the Carolinas, which incurred historic damage from Hurricane Hugo in 1989.
 
Insurance companies paid nearly $4.2 billion (more than $6.7 billion in 2010 dollars) in claims for property damage caused by the storm, making it the most costly catastrophe in the history of insurance at the time, according to the Insurance Information Institute (I.I.I.).
 
Hurricane Hugo, which made landfall near Charleston, S.C., heralded the next two decades of record catastrophic losses for the insurance industry beginning with the $15.5 billion in insured losses from Hurricane Andrew in 1992 ($22.7 billion in 2010 dollars) and culminating in the $41.1 billion in insurance claim payouts ($45.8 billion in 2010 dollars) from Hurricane Katrina in 2005—which remains the most costly natural disaster to date in terms of insurance claims.
 
“In the 22-year period since Hurricane Hugo, insurance companies have paid out nearly $400 billion in property damage claims to help people recover from hurricanes, tornadoes and other catastrophes,” said Dr. Robert Hartwig, I.I.I. president and an economist. “The combination of population growth in coastal areas and a period of more frequent and severe storms increases the likelihood of even more catastrophic damage in the future.”
 
Dr. Hartwig added that in spite of the high level of losses from recent disasters, the industry remains financially strong.

Top 10 Costliest Hurricanes In The United States (1)

($ millions)

      Estimated insured loss
Rank Year Hurricane Dollars when occurred In 2024 dollars (2)
1 2005 Hurricane Katrina $65,000 $104,471
2 2022 Hurricane Ian 54,000 57,231
3 2021 Hurricane Ida 36,000 41,540
4 2012 Hurricane Sandy 30,000 40,939
5 2017 Hurricane Harvey 30,000 38,571
6 2017 Hurricane Irma 30,050 38,432
7 2017 Hurricane Maria 29,511 37,743
8 1992 Hurricane Andrew 16,000 35,845
9 2008 Hurricane Ike 18,200 26,259
10 2024 Hurricane Milton 20,000 20,000

(1) Includes Puerto Rico and the U.S. Virgin Islands and losses sustained by private insurers and government-sponsored programs such as the National Flood Insurance Program. Subject to change as loss estimates are further developed. As of January 2025.
(2) Adjusted for inflation by Aon using the U.S. Consumer Price Index.

Source: Aon.

View Archived Tables


 
 

FOR MORE INFORMATION ABOUT INSURANCE: www.iii.org; PUBLICATIONS: iii store AND amazon.com
 
THE I.I.I. IS A NONPROFIT, COMMUNICATIONS ORGANIZATION SUPPORTED BY THE INSURANCE INDUSTRY.

Insurance Information Institute, 110 William Street, New York, NY 10038, (212) 346-5500



Back to top