Catastrophe insurance plays a vital role in helping protect businesses and households from financial losses incurred from natural calamities, including earthquakes, floods, hurricanes, and wildfires, as well as man-made disasters such as explosions and terrorist attacks. And with the US experiencing a surge in natural catastrophes, getting proper coverage has become a necessity for many companies and families.
Aon’s global catastrophe report for the first six months of 2021 has revealed that the country accounts for almost half, or $46 billion, of the $93 billion in economic losses due to natural calamities. While the global figure is about a third lower than the 10-year average of $136 billion, the US’s losses were 54% higher than its first half 21st Century average.
The polar vortex that blanketed the northern part of the country last February caused the biggest economic loss worldwide at $23 billion.
In terms of insured losses, the US accounted for $30 billion of the $42 billion – a figure that was “notably above average,” according to the report. Aon also noted that the totals are preliminary as the numbers may change as “losses continue to develop.”
Top 10 catastrophe insurance companies
To find out the largest catastrophe insurance specialists in the country, Insurance Business gathered information from database firm Zoominfo. The rankings are based on the insurers’ annual revenue for 2020. Here are the companies that came out on top:
1. Selective Insurance
Annual revenue: $2.9 billion
The Branchville, New Jersey-headquartered insurer ranks 761st in Fortune Magazine’s list of America’s largest companies in 2021. It primarily serves as a holding company for some of the country’s biggest providers of property and casualty (P&C) insurance and alternative risk management services. Selective Insurance offers products and services in 27 states and the District of Columbia through its network of independent agents. Last year, the company’s direct premiums written amounted to $3.2 billion. It is ranked 38th in AM Best’s list of largest P&C insurers in the US and fourth in the National Flood Insurance Program’s (NFIP) list of the nation’s biggest “write-your-own” insurance carriers.
2. Pilot Catastrophe Services
Annual revenue: $1 billion
Pilot is an independent insurance adjusting firm based in Mobile, Alabama. It also has offices in Dallas, Texas and Hudson, Ohio. The company handles claims arising from catastrophic events and has been directly involved in every major disaster the country has faced since its establishment in 1983. Among the services Pilot offers are property and auto claims management, flood claims, coastal and inland marine claims, casualty, general and auto liability claims, non-catastrophe claims handling, and inside claims operations.
3. Amcat Adjusting Services
Annual revenue: $784.7 million
Coppell, Texas-based Amcat provides property adjusting services to insurance carriers and their policyholders nationwide. The company also operates a certified adjuster training and education center for new and experienced adjusters, offering entry-level, advanced, and continuing professional training for P&C claim handling.
4. PURE Insurance
Annual revenue: $747.7 million
PURE Insurance is a member-owned P&C insurer catering exclusively to high-net worth families. It offers coverages for high-value homes and automobiles, watercraft, jewelry, art, fraud and cyber defense, flood, and personal excess liability. The company’s direct premiums written reached $1.3 billion in 2020. It is based in White Plains, New York.
Read more: PURE Insurance named best underwriter
5. Arrowhead General Insurance Agency
Annual revenue: $747.6 million
Based in San Diego, California, Arrowhead describes itself as a “national program administrator” and a managing general agency. The company provides P&C insurance products and administrative services for the insurers, independent agents, and brokers through its 11,000 agency locations nationwide. Arrowhead’s portfolio consists of more than 30 products, including homeowners, earthquake, auto, business owners, and workers’ compensation policies, and niche-targeted products such as those designed for automotive aftermarket, logging and forestry, independent booksellers, manufactured housing dealers and communities, security alarm installers, and railroad contractors. It has written more than $1.2 billion in premiums.
6. RYZE Claim Solutions
Annual revenue: $493.5 million
RYZE is a privately held claims services firm with headquarters in Noblesville, Indiana and Tampa, Florida. It offers P&C claims adjustment services, including flood and catastrophe. The company also provides administration, alternative dispute resolution, audit, re-inspection, and appraisal services.
7. E.A. Renfroe
Annual revenue: $347.5 million
Birmingham, Alabama-headquartered E.A. Renfroe is one of the largest catastrophe claims management specialists in the country. It provides a range of catastrophe support services to insurance companies, self-insured corporations, and government agencies nationwide. Since its establishment in 1994, the company has been involved in the claims management of man-made disasters, including oil spills, explosions, and product liability, and natural catastrophes such as hailstorms, wildfires, hurricanes, earthquakes, and tornadoes, both in the US and Canada.
Annual revenue: $189.9 million
ICAT provides property insurance protection to homeowners and businesses in hurricane- and earthquake-exposed regions across the country. The company serves more than 65,000 clients in 42 states through its online quoting system and traditional broker submissions. ICAT underwrites on behalf of a diverse line up of strong carrier partners and Lloyd’s of London syndicates. Claims administration services are provided by its sister company Boulder Claims. ICAT is based in Broomfield, Colorado, and has offices in Tampa, Florida and Honolulu, Hawaii.
Read more: ICAT on lessons learned after hard CAT years
9. Pacesetter Claims Services
Annual revenue: $185.8 million
Pacesetter has been providing catastrophic and daily property claims adjusting services since its establishment in 1997. These include flood and appraisal services, third-party administration (TPA), dispute resolution, desk adjusting, and adjuster training. Pacesetter is headquartered in Tulsa, Oklahoma, with offices in Jacksonville, Florida and Pasadena, California.
10. California Earthquake Authority
Annual revenue: $156.1 million
California Earthquake Authority (CEA) is a publicly managed and privately funded not-for-profit organization that provides residential earthquake insurance to homeowners and renters in the state. The Sacramento-based insurer boasts more than $19 billion in claim-paying capacity and is the largest provider of residential earthquake insurance in the country. It currently accounts for two-thirds of all residential earthquake policies sold in California. In 2020, CEA’s direct premiums written amounted to $845.1 million.