In this article, we will look into the 15 best earthquake insurance companies heading into 2024. If you want to skip our detailed analysis, you can go directly to the 5 Best Earthquake Insurance Companies Heading into 2024.
Why Do You Need Earthquake Insurance?
Earthquake insurance covers both life and non-life insurance, depending on the type of insurance policy. It provides coverage for property and casualty loss due to an earthquake. Earthquakes and other natural disasters are usually not covered by the homeowner's and renters' insurance.
Earthquake insurance is worth considering for people living in areas prone to earthquakes and other natural disasters, as stated before, hazard or home insurance does not provide coverage for damages done by earthquakes. An article by Forbes, published on November 7, cited the findings of the United States Geological Survey. The survey reported that over half of American residents are prone to damage from an earthquake. The report identified the top ten states with the highest potential for earthquake damages including California, Washington, and Utah among others.
Earthquake insurance usually covers dwelling insurance that includes the house and the structures connected to it, such as concrete slab floors inside the dwelling, the foundation, and an attached garage. It also provides coverage for unattached structures including garages, carports, storage buildings, pump houses, and other structures. Personal property items such as furniture, clothes, appliances, dishes, pots and pans, jewelry, musical instruments, and rugs are also covered by earthquake insurance. The insurance reimburses for extra expenses such as lodging, meals, and laundry depending on the damage.
The article cited a survey by the Insurance Information Institute, conducted in July 2020, stating that the Western region of the US has 28% earthquake insurance holders, followed by the South reporting a 25% earthquake insurance prevalence. The percentage of homeowners with earthquake insurance has significantly increased from 2018. In 2018, 18% of Americans had earthquake insurance in the West and 7% in the South. The number has experienced a significant surge, reporting a 10% and 18% increase respectively. Raising awareness among people can be considered one of the factors leading to this rise and ultimately the market growth.
Global Earthquake Insurance Market: An Analysis and Major Players
According to a report by Market Reports World, the global earthquake insurance market was worth $7.68 billion in 2022. The market is expected to grow further at a CAGR of 5.1% and reach $10.35 billion in 2028. The growth can be attributed to the adoption of advanced technologies and innovative solutions by major players, driving revenue in the market.
Some of the prominent names in the market include Swiss Re Ltd (OTC:SSREY), Mapfre, S.A. (OTC:MPFRY), and Mercury General Corporation (NYSE:MCY).
Swiss Re Ltd (OTC:SSREY) is a leading insurance company, specializing in reinsurance, insurance, and other related financial market products. On December 14, the company announced that it had acquired Fathom, a UK-based water resilience specialist. The partnership aims to address the growing protection gap for natural catastrophes. The expertise of Fathom will help Swiss Re Ltd (OTC:SSREY) enhance its data and risk capabilities, enhancing its ability to analyze and mitigate flood risks for clients. This partnership will help the company improve its natural disaster risk portfolio.
Mapfre, S.A. (OTC:MPFRY) is a multinational insurance company, headquartered in Spain. On November 29, the company announced that it had joined forces with Cyberwrite, a cyber insurance policies platform. The partnership aims to provide a vital shield to small and medium-sized enterprise (SME) clients. These businesses are prone to cyberattacks yet critically important to global economic health. Through the innovative platform of Cyberwrite, Mapfre, S.A. (OTC:MPFRY) will gain access to real-time, granular risk analyses of each SME's cyber posture. The platform utilizes a 4SEEN algorithm to identify potential vulnerabilities, from exposed ports and outdated software to malware and data breach risk. Through this partnership, Mapfre, S.A. (OTC:MPFRY) can provide tailored solutions to SMEs and provide practical guidance on shoring up to them.
Mercury General Corporation (NYSE:MCY) is a major insurance company specializing in multiple insurance businesses. On October 31, the company reported its earnings for the fiscal third quarter of 2023. The company reported an EPS of $1.14 and surpassed estimates by $1.15. Mercury General Corporation (NYSE:MCY) reported revenue of $1.21 billion for the quarter and outperformed estimates by $99.61 million. The company's revenue grew 16.63% on a year-over-year basis.
With this context, let's have a look at the 15 best earthquake insurance companies heading into 2024.
15 Best Earthquake Insurance Companies Heading into 2024
15 Best Earthquake Insurance Companies Heading into 2024
Methodology
To compile our list of the 15 best earthquake insurance companies heading into 2024, we opted for a consensus approach. We sifted through various market reports including, Allied Market Research, Market Wide Research, Market Research Intellect, and HTF Marketing Intelligence. We looked for public and private companies operating in the earthquake insurance market and then sourced their market caps of public companies from Yahoo Finance. For the private companies in our list, we ranked them based on their annual revenue sourced from their websites. We have ranked the the best earthquake insurance companies heading into 2024 in ascending order of their market capitalization, as of December 19, 2023, and annual revenue.
By the way, Insider Monkey is an investing website that tracks the movements of corporate insiders and hedge funds. By using a consensus approach, we identify the best stock picks of more than 900 hedge funds investing in US stocks. The top 10 consensus stock picks of hedge funds outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). Whether you are a beginner investor or a professional one looking for the best stocks to buy, you can benefit from the wisdom of hedge funds and corporate insiders.
15 Best Earthquake Insurance Companies Heading into 2024
Palomar Holdings, Inc. (NASDAQ:PLMR) is a leader in specialty property insurance providing risk management for earthquakes, hurricanes, floods, and other disasters. Founded in 2014, the company provides products and services across insurance, earthquake insurance, specialty insurance, catastrophe insurance, personal insurance, commercial insurance, residential Earthquake, commercial DIC, and P&C insurance. As of December 19, Palomar Holdings, Inc. (NASDAQ:PLMR) boasts a market cap of $1.47 billion.
14. Mercury General Corporation (NYSE:MCY)
Market Cap as of December 19: $2.09 billion
Mercury General Corporation (NYSE:MCY) is a leading insurance company, specializing in auto insurance, home insurance, condo insurance, renters insurance, umbrella insurance, and earthquake insurance. With over 60 years of experience, the company operates across several US states including Arizona, California, Florida, Georgia, Illinois, and New York among others. As of December 19, Mercury General Corporation (NYSE:MCY) reports a market cap of $2.09 billion.
13. Country Financial
Annual Revenue (2022): $3.91 billion
Country Financial is a group of US-based insurance and financial services companies, operating in 19 states. The group offers a variety of insurance products and services covering auto, home, life, farm, and commercial insurance among others. The company provides additional earthquake insurance along with homeowners insurance to its customers based on their choice and policy preference. The company is ranked among the best earthquake insurance companies. Country Financial reported an annual revenue of $3.91 billion in 2022.
12. Mapfre, S.A. (OTC:MPFRY)
Market Cap as of December 19: $6.74 billion
Mapfre, S.A. (OTC:MPFRY) is a leading multinational insurance company, headquartered in Spain. The company has experience of over 90 years and provides a range of innovative solutions to a clientele of more than 30 million customers. It offers insurance services across multiple segments including auto insurance, home insurance, earthquake insurance, and business insurance among others. Mapfre, S.A. (OTC:MPFRY) provides coverage for material damages caused by an earthquake. It is ranked 12th on our list and is valued at $6.74 billion, as of December 19.
11. American Family Insurance Group
Annual Revenue (2021): $14.40 billion
American Family Insurance Group is a leading US insurance company, providing business, property, auto, and life Insurance. With an experience of over 90 years, the company provides a wide range of products and services. The company's earthquake insurance provides coverage for the cost of repair or replacement. In 2021, American Family Insurance Group reported a revenue of $14.4 billion.
10. USAA
Annual Revenue (2022): $27.44 billion
USAA is one of the best insurance companies in the US, providing financial services, employee well-being, risk management, and insurance services. The company offers earthquake insurance as an additional service to homeowners insurance. The company reported an annual revenue of $27.44 billion in 2022. It is ranked among the best earthquake insurance companies heading into 2024.
9. Swiss Re Ltd (OTC:SSREY)
Market Cap as of December 19: $32.23 billion
Swiss Re Ltd (OTC:SSREY) is one of the market leaders in insurance, headquartered in Zurich. The company's offerings include reinsurance, insurance, insurance securities, risk transfer, property and casualty, and life and health insurance. Swiss Re Ltd's (OTC:SSREY) earthquake insurance product, QUAKE, is a flexible and fast product that provides immediate payout within 30 days. As of December 19, the group is valued at $32.23 billion.
The Allstate Corporation (NYSE:ALL) is a major US-based insurance company. Headquartered in Illinois, the company offers a comprehensive range of products for property & casualty, auto insurance, life insurance, homeowners insurance, auto Insurance, earthquake insurance, flood Insurance, general liability, and annuities among others. As of December 19, the Allstate Corporation (NYSE:ALL) boasts a market cap of $36.19 billion.
The Travelers Companies, Inc. (NYSE:TRV) is one of the top insurance companies in the world. The company offers a comprehensive suite of insurance products and services across multiple lines including earthquake insurance. As of December 12, it boasts a market cap of $42.52 billion. It is ranked 7th on our list of the best earthquake insurance companies heading into 2024.
Market Cap as of December 19: $47.35 billion American International Group, Inc. (NYSE:AIG) is ranked 6th on our list of the best earthquake insurance companies. The company offers a wide range of products and services across various business lines such as travel insurance, earthquake, life insurance, and retirement insurance among others. The company offers insurance against natural catastrophes including earthquake, flooding, and tsunami among others. As of December 19, American International Group, Inc. (NYSE:AIG) boasts a market cap of $47.35 billion.
