- Initial projections for auto and boat losses were initially substantial, totalling several billion between the state’s largest insurers
- New estimates from Progressive Insurance are substantially lower
- Other major insurers, including Geico and State Farm, have yet to report any new claims information
Damage estimates from Hurricane Ian for cars, boats and RV’s are starting to trickle in, and the news may not be as bad as initially feared. While there has been substantial damage reported, the numbers appear to be trending below that of initial estimates in the days immediately following the storm. Hurricane Ian’s storm surge did significant damage to buildings, some of which were badly damaged or completely washed away. But the waves, heavy rains and flooding also did a number on cars, trucks, boats, RV’s, motorcycles and other specialized vehicles.
Some estimates in the immediate aftermath of the storm, based on computer modeling and risk assessments, predicted that two of the largest auto insurers in the state – Geico and Progressive – would total $2.7 billion by themselves. Geico’s share of vehicle losses were predicted to exceed $1.5 billion, according to S&P Global Intelligence. A separate analysis, based solely on market share analysis and the storm’s path, put the figure for Geico lower, at approximately $1 billion. Progressive, meanwhile, was projected to incur a hit of $1.2 billion in vehicle losses.
Another large insurer, State Farm, which offers coverage on a wide range of private property, including vehicles, reported 10,000 claims had already been filed. The company said at the time that about half of those claims were for automobile damage.
But today, Progressive insurance company, one of the largest auto insurers in the state, announced an estimated $760 million in losses from Hurricane Ian, with about $585 million of that attributed to vehicle damage – substantially less than other industry modelers had predicted. Roughly 95 percent of those losses were incurred in Florida, with the bulk of the remainder in South Carolina.
“We evaluated and reserved for this catastrophe using our knowledge and experience of reporting patterns from many past storms in addition to several assumptions specific to this hurricane,” the Progressive filing said. It added that “these estimates will change, and could change materially, as additional information develops and claims are reported. We continue to be proactive in the affected areas with the deployment of over 1,500 claim representatives and independent adjusters to serve all of our customers impacted by Hurricane Ian.”
Geico, the state’s largest auto insurer, has yet to report its losses publicly. Statewide, the company has underwritten about 67,000 policies for marine watercraft, which is more than 100,000 fewer than Progressive’s boat insurance total. Only a fraction of those policies were likely in the storm’s path, however.
For comparison, Hurricane Charlie, which came ashore in roughly the same area in 2004, saw vehicle losses totalling approximately $380 million, or about $596 million after adjusting for inflation. There has been substantial population growth in Florida since then, however.
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Clinton Mora is a reporter for Trending Insurance News. He has previously worked for the Forbes. As a contributor to Trending Insurance News, Clinton covers emerging a wide range of property and casualty insurance related stories.