Special Report: Nationwide’s Commercial Lines Protection Survey

Nationwide has released the statistics from its recent commercial lines protection survey. It got responses from commercial property owners, business owners and construction owners and builders as well as independent insurance agents who sell commercial property insurance.

The wildfire risk states where these groups — that include agency principals and producers and CSRs — were surveyed include the PIA Western Alliance states of Washington, Oregon, Idaho, Montana, California, Nevada, Arizona and New Mexico as well as Utah,Wyoming, Colorado and Kentucky.

The hurricane prone states samples came from North Carolina, South Carolina,Georgia, Florida, Alabama, Mississippi and Texas.

Here are the results of the first half of the survey:

These are the concerns about the risk of severe weather and natural disasters by the just noted groups.

Independent agents:

Very: concerned:  69%

Extremely concerned: 12%

Very concerned: 57%

Somewhat concerned: 31%

Not very concerned: 0

Property owners:

Very concerned: 62z%

Extremely concerned: 8%

Very concerned: 54%

Somewhat concerned: 38%

Not very concerned: 0

Wildfire risk states:

Very concerned: 65%

Extremely concerned: 15%

Very concerned: 50%

Somewhat concerned: 33%

Not very concerned: 2%

Hurricane risk states:

Very concerned: 70%

Extremely concerned: 13%

Very concerned: 57%

Somewhat concerned: 29%

Not very concerned: 1%

These are what property owners see as the most risks from damaging winds, tornados, flooding and lightning strikes.

Independent agents

Damaging winds: 67%

Tornado: 67%

Flood: 72%

Lightning: 70%

Tropical storms or hurricanes: 69%

Earthquakes: 58%

Severe heat wave: 54%

Ice storm or severe cold wave: 34%

Wildfire: 47%

Landslide: 33%

Drought: 36%

Damaging hail: 26%

Property owners:

Damaging winds:70%

Tornado: 68%

Flood: 66%

Lightning: 65%

Tropical storms or hurricanes: 62%

Earthquakes: 51%

Severe heat wave: 51%

Ice storm or severe cold wave: 45%

Wildfire: 40%

Landslide: 31%

Drought: 27%

Damaging hail: 26%

Wildfire-risk states:

Damaging winds: 71%

Tornado: 56%

Flood: 67%

Lightning: 67%

Tropical storms or hurricanes: 56%

Earthquakes: 81%

Severe heat wave: 75%

Ice storm or severe cold wave: 16%

Wildfire: 90%

Landslide: 51%

Drought: 65%

Damaging hail: 26%

Hurricane-risk states:

Damaging winds: 71%

Tornado: 83%

Flood: 90%

Lightning: 71%

Tropical storms or hurricanes: 84%

Earthquakes: 70%

Severe heat wave: 42%

Ice storm or severe cold wave: 23%

Wildfire: 43%

Landslide: 36%

Drought: 34%

Damaging hail: 34%

The big concerns are structural damage including roofs, windows and foundations:

National:

Structural damage: 42%

Roof damage: 36%

Broken windows: 30%

Business interruption: 28%

Personal property or contents damage: 26%

Foundation damage: 26%

Water intrusion or flood damage: 25%

Damaged electrical systems: 21%

Damaged plumbing systems: 15%

Smoke or fire damage: 13%

Fallen or uprooted trees: 9%

Damaged walls or paint: 9%

Discoloration of walls, ceilings and floors: 7%

Mold or mildew: 3%

Wildfire-prone states:

Structural damage: 45%

Roof damage: 25%

Broken windows: 15%

Business interruption: 28%

Personal property or contents damage: 25%

Foundation damage: 22%

Water intrusion or flood damage: 15%

Damaged electrical systems: 19%

Damaged plumbing systems: 5%

Smoke or fire damage: 54%

Fallen or uprooted trees: 10%

Damaged walls or paint: 16%

Discoloration of walls, ceilings and floors: 12%

Mold or mildew: 2%

Hurricane-prone states:

Structural damage: 56%

Roof damage: 33%

Broken windows: 19%

Business interruption: 28%

Personal property or contents damage: 24%

Foundation damage: 22%

Water intrusion or flood damage: 40%

Damaged electrical systems: 27%

Damaged plumbing systems: 9%

Smoke or fire damage: 7%

Fallen or uprooted trees: 17%

Damaged walls or paint: 5%

Discoloration of walls, ceilings and floors: 6%

Mold or mildew: 3%

Of the property owners surveyed, more than a third have recently suffered damage from a natural disaster:

Nationally:

Yes, suffered damage: 36%

Suffered damaged within the last year: 13%

Damage suffered in the past two years: 12%

Suffered damaged within the last three to five years: 11%

Wildfire-risk states:

Yes, suffered damage: 38%

Suffered damaged within the last year: 9%

Damage suffered in the past two years: 14%

Suffered damaged within the last three to five years: 15%

Hurricane-risk states:

Yes, suffered damage: 59%

Suffered damaged within the last year: 22%

Damage suffered in the past two years: 14%

Suffered damaged within the last three to five years: 24%

Hurricanes, floods and tornados are the most common disasters causing property damage:

Tropical storms or hurricane: 42%

Flood: 30%

Tornado: 29%

Wildfire: 17%

Severe heat wave: 14%

Damaging winds: 12%

Lightning: 10%

Earthquake: 9%

Drought: 6%

Ice storm or cold wave: 6%

Damaging hail: 3%

Structural and roof damage, and business interruption are the most common damages:

Structural damage: 52%

Business interruption: 50%

Roof damage: 49%

Personal property or contents damage: 39%

Damaged electrical systems: 38%

Broken windows: 38%

Water intrusion: 34%

Fallen or uprooted trees: 28%

Foundation damage: 26%

Damaged plumbing systems: 21%

Wall, floor or ceiling discoloration: 19%

Mold or mildew: 11%

Property owners recover, and fairly quickly, but the cost of the damage is often substantial:

Disaster recovery period:

39% recovered within 1 to 3 months

49% recovered within 4 to 6 months

88% recovered within 6 months

12% took more than 6 months

The cost to property owners from a natural disaster:

Less than $5,000: 6%

$5,000 to $10,000: 12%

$10,000 to $20,000: 33%

$20,000 to $50,000: 49%

Over $50,000: 1%

Next week, Weekly Industry News will look more deeply at business responses and agent and agency responses to the survey.

Source link: Nationwide — https://bit.ly/3IdrYDQ

About PIA Western Alliance

The Professional Insurance Agents Western Alliance is a membership organization promoting and enhancing the success of independent agencies seeking to grow, learn and be heard within the industry.


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