Reinsurance News

Insurers paid out, reserved $7.7bn in Louisiana from Laura, Delta & Zeta

27th January 2021 - Author: Charlie Wood

Hurricanes Laura, Delta and Zeta promoted insurers to pay or reserve $7.7 billion on claims in Louisiana throughout 2020, according to the state’s insurance commissioner Jim Donelon.

Policyholders are reported to have filed 290,847 claims of all types from the three storms.

Of those, 56% were closed with payment as of December 31, garnering $5 billion in payments for damage caused by the three hurricane events.

These figures include claims from personal and commercial insurance. They do not include claims or payments from the National Flood Insurance Program, which is not regulated by the Louisiana Department of Insurance.

“After a record storm season that tested the state multiple times, paid claims represent a way forward for those most affected by these hurricanes,” said Donelon.

“This is $7.7 billion owed to Louisiana policyholders to rebuild their lives, homes and businesses. Furthermore, it’s billions of dollars that didn’t come from taxpayers in a time when municipal budgets are reeling from the events of the last year.”

Policyholders have filed 169,891 claims from hurricane Laura, which struck Southwest Louisiana on August 27 as a Category 4 storm.

By the end of 2020 insurers had closed 77% of the claims from Laura, 59% of which were closed with payment.

Total paid losses plus reserves on reported claims from all surveyed lines of insurance for Laura at the end of 2020 were $6.6 billion, accounting for the vast majority of damage from the record 2020 hurricane season in Louisiana.

71,945 Policyholders filed claims from hurricane Delta, which made landfall in Southwest Louisiana on October 9 as a Category 2 storm.

By the end of the year, insurers had closed 82% of all Delta claims, and 53% of those claims were closed with payment.

Insurers paid or reserved $556 million to cover losses from reported claims from all surveyed lines of insurance for Delta by the end of 2020.

Hurricane Zeta, which made landfall on October 28 as a Category 2 storm, prompted policyholders to file 49,011 claims through the end of the year.

Insurers closed 79% of reported Zeta claims, and 46% of those claims were closed with payment.

Total paid losses plus reserves on reported claims from all surveyed lines of insurance were $499 million for Zeta at the end of 2020.

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