NEW YORK--(BUSINESS WIRE)--When Superstorm Sandy slammed into the Eastern seaboard on October 29, 2012, it was one of the deadliest windstorms to have occurred in 40 years. Five years later, the 2017 hurricane season is quickly becoming one of the most active on record. To mark the fifth anniversary of Sandy’s landfall, a new report titled From Sandy to Maria: Increasingly Destructive 'Perfect Storms' from Allianz Global Corporate & Specialty (AGCS), analyzes what made Sandy unique, the current 2017 Atlantic hurricane season and what clients can do to prepare for the “new normal” of extreme weather events.
“Extensive data has shown that the global average sea level has risen by eight to nine inches, resulting in an increased severity of storm surge along the U.S. coastlines,” says Thomas Varney, Regional Manager for Allianz Risk Consulting in North America. “The losses from Sandy and the current storm season clearly illustrate this point.” According to Allianz, the severity of losses from weather events is already increasing. The average amount paid for extreme events - including windstorms - by insurers between 1980 and 1989 totaled $15bn a year; between 2010 and 2013 this rose to an average of $70bn a year.
Additional statistics recorded since Sandy include*:
- Total economic losses from Sandy total $70bn
- Sandy ranks between Hurricanes Katrina ($160bn) and Andrew ($48bn) as the second costliest US hurricane, but has since been dwarfed by Hurricane Harvey ($70-108bn)
- Total economic losses are still unfolding for Hurricanes Irma and Maria
The current Atlantic hurricane season is set apart by the high number of intense storms that have formed and by how many have made it to landfall; activity exploded in the late summer as eight consecutive hurricanes formed in a six-week period. Since hurricanes thrive on warm ocean water, it’s likely that rising ocean temperatures connected to climate change will provide even more opportunities for storms to rapidly intensify through November.
“It is a certainty that as the value of property in coastal areas increases, the financial impact of storm events becomes even more substantial. As such, many insureds are paying closer attention to prevention guides in relation to high wind, flooding and storm surge events,” added Varney.
Further analysis of AGCS claims also show that windstorm claims already account for 40 percent of natural hazard claims and are already the fifth top cause of loss for industrial companies. Through a series of windstorm and flood checklists as well as loss prevention kits, AGCS routinely outlines for clients what they need to do now to protect their property and worksites against future storm events. Latest recommendations include monitoring the National Weather Services’ new Storm Surge Watch/Warning Map for Atlantic tropical cyclones, study FEMA’s revised flood maps, consider the installation of emergency generators, flood gates and doors as well as raise all equipment critical to building operations such as electrical switchgear and transformers.
When adversity strikes, Allianz has set a high standard by delivering outstanding claims service and Superstorm Sandy was no exception. In less than six months, Allianz paid more than 80% of the claims attributed to Sandy, and altogether, Allianz paid close to 1,400 claims totaling $337mn in payouts to insureds. In line with its Claims Pledge to be there before, during and after an event, Allianz also designs specific business continuity and business interruption solutions to provide maximum coverage.
About Allianz Global Corporate & Specialty
Allianz Global Corporate & Specialty (AGCS) is the Allianz Group's dedicated carrier for corporate and specialty insurance business. AGCS provides insurance and risk consultancy across the whole spectrum of specialty, alternative risk transfer and corporate business: Marine, Aviation (incl. Space), Energy, Engineering, Entertainment, Financial Lines (incl. D&O), Liability, Mid-Corporate and Property insurance (incl. International Insurance Programs).
Worldwide, AGCS operates in 32 countries with own units and in over 210 countries and territories through the Allianz Group network and partners. In 2016, it employed around 5,000 people and provided insurance solutions to more than three quarters of the 'Fortune Global 500' companies, writing a total of €7.6 billion gross premium worldwide.
AGCS SE is rated AA by Standard & Poor’s and A+ by A.M. Best.
For more information please visit www.agcs.allianz.com or follow us on Twitter @AGCS_Insurance LinkedIn and Google+.
Cautionary Note Regarding Forward-Looking Statements
*Business Insider, September 8, 2017, “Mapped: The 10 costliest hurricanes in US history,” Umair Irfan.
