Insured Losses Resulting from the February 2021 Texas Winter Weather Event: April 2021 Page: 3
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Texas Department of Insurance
February 2021 Texas Winter Weather Event
Data as of April 30, 2021 (70 Days After the End of the Event)
As of April 30, 2021, reporting insurers indicated they had 478,765 insurance claims and expect
$9 billion in insured Texas losses from this event. The $9 billion consists of $3.5 billion in payme
$3.6 billion in unpaid losses on individual claims (claim reserves), and $2 billion in actuarially de
incurred but not reported (IBNR) losses. Insurers expect that about $2.8 billion of the $9 billion
reinsurance. Reinsurance is insurance that insurance companies buy to protect their surplus.
As of April 30, 2021, approximately 20% of the claims were open, 44% were closed with a paym
and 36% were closed without a payment to the policyholder. The percentage of claims open di
property and commercial property; about 16% of residential property claims and 58% of comm
open.
For residential property claims that were closed by April 30, 2021, on average insurers closed a
differed between policies that provided actual cash value (ACV) coverage versus policies that pi
coverage (RCV). For residential property-ACV policies, the average time to close a claim was 20
property-RCV policies it was 22 days.
The average incurred loss was about $13,100 for residential property policies, about $98,500 fo
policies, about $4,100 for automobile policies, and about $25,700 for all other. These averages
data matures and insurers investigate and adjust claims.
TDI Claim and Loss Survey
On February 26, 2021, when TDI activated its catastrophe statistical plan, TDI also issued an ad
personal and commercial lines insurers to report weekly aggregate claims and losses resulting f
event. The survey does not include surplus lines companies, has limited data elements, and has
However, it provides a snapshot of claims data more quickly than the catastrophe statistical plaed to ultimately pay about
nts made to policyholders,
termined reserves for
(31%) will be covered by
ent to the policyholder,
ffers between residential
ercial property claims were
claim after 21.8 days. This
rovide replacement cost
days. For residential
r commercial property
will likely change as the
hoc survey to 68 top
From the winter weather
no geographic breakdown.
n. Appendix C contains aTexas Department of Insurance
February 2021 Texas Winter Weather Event
Page 3
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Texas. Department of Insurance. Insured Losses Resulting from the February 2021 Texas Winter Weather Event: April 2021, report, October 27, 2022; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth1511286/m1/4/?q=%22%22~1: accessed July 15, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu.; crediting UNT Libraries Government Documents Department.