Viewpoint: Ranking Hurricane Ian Among the Ten Worst Natural Disasters in US History

We are in the early stages of sifting through the debris of Hurricane Ian and calculating the financial and human toll it took after coming ashore in Southwest Florida with 150 mph winds and 20 inches of rain. The insured losses expected to flow from this natural disaster are still being calculated, but estimates range from $60 billion to more than $80 billion and some are already speculating as to where this storm ranks among the top ten natural disasters in U.S. history.

Ranking natural disasters tends to be somewhat arbitrary. Whether or not a storm which kills three people is worse than one which causes $1 billion in damages is perhaps something that should be left to philosophers and theologians. Ranking the “deadliest” natural disasters would undoubtedly result in a slightly different list. However, in the context of subrogation and with relevance to the insurance industry, for purposes of the following list particular weight is placed on physical property damage, although both loss of property and loss of life affect the insurance industry.

In terms of U.S. natural disasters, perhaps it can be said that America has been lucky. None of the ten worst natural disasters in U.S. history even make the top ten deadliest natural disaster in world history. For example, Wuhan, China makes news again when you consider that the deadliest natural disaster in the history of the planet was the 1931 China floods. These were a series of floods that occurred from June to August 1931 in China, hitting major cities such as Wuhan, Nanjing and beyond, and resulted in the deaths of 4 million people.

In the U.S., however, and using the conservative estimate of $60 billion in damages from Hurricane Ian, the list of the top ten worst natural disasters In US history (based solely on a financial toll and insurance losses caused in 2022 dollars) looks something like this:

In the casino-like world of underwriting, insurance companies wager against catastrophic natural disasters big enough to put them into receivership. Insurance is the thin white line that separates us from destitution and anarchy when God sends a hurricane, tornado, flood, wildfire, earthquake, or other natural disaster. Aggressive subrogation practices ensure that insurance companies are not left standing alone when devastation takes place. Damage which could have been prevented but for the negligence of a person or company should be borne by the wrongdoer. That is the function and purpose of subrogation.