An AM Best report issued late this month indicates that insurers will weather this month’s storm of South Carolina storms just fine.
“Most of the top homeowners and auto direct writers in South Carolina have diverse national geographic and product profiles, and possess strong risk-adjusted capitalization, comprehensive reinsurance programs and solid overall risk management capabilities, and are thus prepared for events of this magnitude,” the report says.
The report, “Insurers Withstand Historic South Carolina Flooding,” goes on to say that it will take more time to see how well smaller regional insurers respond. According to the report, only one affected company collects more than 8 percent of its total premium volume in South Carolina, and that is South Carolina Farm Bureau, with a whopping 59% of premiums coming from the state. Next highest is United Automobile Insurance Group at about 7.5%.
According to the National Oceanic and Atmospheric Administration, the 3-day rainstorm dropped as much as 20 inches of water on parts of South Carolina and was a 1 in 10,000-years event.
“This episode of volatile weather is another reminder of the damages a property and casualty writer can be exposed to and the need for companies to continue to focus on developing prudent risk management practices,” the report concludes.
