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

2 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

3 Most of US Population & Property Has Major CAT Exposure Is Anyplace Safe?

History of Disasters National Perspective

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

6 Inflation-Adjusted U.S. Insured Catastrophe Losses By Cause of Loss, ¹ Source: Insurance Services Office (ISO).. 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 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 Insurance Program. 6 Includes wildland fires. Insured disaster losses totaled $289.1 billion from (in 2005 dollars). Tropical systems accounted for nearly half of all CAT losses from , up from 27.1% from

7 Top 11 Insured Property Losses in US ($2005) Note: 9/11 loss figure is for property claims only. Sources: ISO/PCS; Insurance Information Institute. Eight of the 11 most expensive disasters is US history occurred since 2001

8 One of the Four Largest Catastrophes Occurred in NY There have been four megacatastrophes in the U.S. 1.Hurricane Andrew (1992) 2.Northridge Earthquake (1994) 3.9/11(2001) 4.Hurricane Katrina (2005)

History of Disasters A Short History of Catastrophes in New York

10 Risk of Hurricanes In New York A study by the International Hurricane Research Center named Eastern Long Island New York as one of the most hurricane-vulnerable areas in the U.S. based on the:  Frequency and severity of storms,  Quality of protections such as levees,  Potential for flooding and erosion,  Population at risk,  Evacuation possibilities,  Value of property and the state and local capabilities to respond.

11 History of Disasters  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.

12 Top Hurricanes to Hit NY  Hurricane Bob in million in losses, million in $2006  Hurricane Floyd in million in losses, 42.4 million in $2006  Hurricane Frances, in million in losses, 58.7 in $2006  Hurricane Gloria, in million in losses, $ in 2006 Note: All losses are insured losses  Hurricane Isabel, in million in losses, 49.3 million in $2006  Hurricane Ivan, in million in losses 21 million in $2006  Hurricane Jeanne, in million in losses 37.4 million in $2006

13 Risk of Hurricanes In New York  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.  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.  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.

14 Track of “Great New England Hurricane” of 1938 Source: WeatherUnderground.com, accessed February 4, “Great New England Hurricane” of 1938 a.k.a.“Long Island Express” caused severe damage through much of the Northeast.  600+ Deaths  $308 million

15 Track of “Great New England Hurricane” of 1938 Source: WeatherUnderground.com, accessed February 4, “Great New England Hurricane” of 1938 a.k.a.“Long Island Express” caused severe damage through much of the Northeast.  600+ Deaths  $308 million

16 Storm Season of 1944: A Busy one for the Northeast Three storms affected NY, NJ and New England in 1944, including “Great Atlantic Hurricane”  46 deaths  $100 million damage  109mph gusts in Hartford Source: WeatherUnderground.com, accessed May 31, 2006; NOAA loss & fatality figures.

17 Storm Season of 1954: The Northeast Hit Again NY/New England areas hit by Carol & Edna two weeks apart  Carol: 8-10 ft. floodwaters in Providence  Edna hits Cape Cod  Combined: 80 deaths, $501 million losses Source: WeatherUnderground.com, accessed May 31, 2006; NOAA loss & fatality figures.

18 Storm Season of 1960: Brenda & Donna Came to Visit NY/New England areas were hit twice in  Donna killed 50, $387 million damage along East Coast Source: WeatherUnderground.com, accessed May 31, 2006; NOAA loss & fatality figures.

19 After a 25 Year Hiatus, Hurricane Gloria Hit in 1985 Source: WeatherUnderground.com, accessed May 31, 2006; NOAA loss & fatality figures. NY/New England areas were hit by Gloria 9/27/85  8 deaths  $900 million damage

History of Disasters Cost of insured Property in New York

21 Coastal Development  Between 1980 and 2003, the populations of coastal counties grew by 33 million people or 28 percent.  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.

22 Value of Insured Residential Coastal Exposure (2004, $ Billions) Source: AIR

23 Value of Insured Commercial Coastal Exposure (2004, $ Billions) Source: AIR

24 Total Value of Insured Coastal Exposure (2004, $ Billions) Source: AIR Worldwide Northeast states insured coastal exposure totals $3.73 trillion. With $1,901.6 billion in exposure NY ranks 2 th in US, 1 nd in the Northeast and in New England

25 Level of Preparedness  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.  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.

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

28 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**

29 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.

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34 Disaster Insurance Information  Preparedness information covering hurricanes, tornadoes, earthquakes, floods, wildfires and terrorism Evacuation video