Figure 15-7: Vulnerability
of U.S. insurers to 100-year events, represented as combined effect of loss magnitude
and insurance company capacity (GAO, 2000). This analysis assumes that all insurers
place and price policies identically. It excludes reinsurance, as well as local
government-supported insurance or reinsurance programs in California and Florida.
It also excludes effects of catastrophes striking more than one state (e.g., estimated
1-in-100-year loss for the entire United States is $155 billion). Capacity implied
may include some surplus amounts that are not available for paying natural catastrophe
claims. Losses that result in claims of more than 20% of surplus trigger initial
stage of formal solvency review by National Association of Insurance Commissioners.
Puerto Rico (not shown) has a 1-in-100-year loss of US$27.1 billion.