Throughout the years insurance companies have been forced to pay out billions to individuals, companies and organisations for claims made on insurance policies. These claims have been made for a number of different reasons, including collapsed companies, building damages, and even more extreme reasons including the loss of life and natural disasters. Most insurance payouts are small, at just hundreds or thousands of pounds, but some insurance claim payouts reach millions or even billions. Let’s take a look at some of the biggest insurance claim payouts of all time.
10 of the biggest insurance claim payouts
- Thailand Floods (2011) – approximately $12 billion
During monsoon season in 2011, Thailand suffered a devastating flood, which is now described as the costliest flood of all time. As a result of the flooding, 815 lives were lost and 13.6 million people were affected. The World Bank estimated the flood cost $46.5 billion in economic damages and losses, mainly due to the manufacturing industry as seven major industrial estates were flooded. Of this damage and loss amount, approximately $12 billion were insured losses.
- East Japan Earthquake (2011) – approximately $13.8 billion
The East Japan Earthquake, the largest earthquake ever recorded in Japan, destroyed 121,996 buildings, half destroyed 282,941 buildings and partially destroyed 748,461 structures. Causing financial damage to buildings, utilities and social infrastructure.
- Hurricane Irma (2017) – approximately $14.8 billion
Hurricane Irma, a category 5 hurricane, caused widespread destruction totalling $77.2 billion. Causing damage in Barbuda, Saint Barthélemy, Saint Martin, Anguilla, and the Virgin Islands and resulting in a minimum of 134 deaths across Anguilla, Barbados, Barbuda, the British Virgin Islands, Cuba, the French West Indies, Haiti, Puerto Rico, Sint Maarten, the U.S. Virgin Islands and 92 in the United States.
- Northridge Earthquake (1994) – approximately $15.3 billion
Lasting just 10-20 seconds, the Northridge Earthquake caused $13–50 billion in total damages, killing 57 individuals and injuring more than 9000. The earthquake struck in the San Fernando Valley and could be felt as far away as San Diego, Turlock, Las Vegas, Richfield, Phoenix, and Ensenada.
- Hurricane Sandy (2012) – approximately $15 billion
Otherwise known as Superstorm Sandy, this hurricane was extremely destructive, causing almost $70 billion in damages in the US and $100 million in damages in Canada. Killing 233 people across eight countries from the Caribbean to Canada, it is the largest Atlantic hurricane on record (measured by diameter) with winds spanning 1,150 miles.
- Hurricane Maria (2017) – approximately $18 billion
Hurricane Maria was a lethal Category 5 hurricane which devastated the northeastern Caribbean, causing damages of more than $91.61 billion and 3,059 fatalities. This loss makes Hurricane Maria the deadliest named Atlantic hurricane to date.
- Hurricane Harvey (2017) – approximately $19 billion
A category 4 hurricane which caused catastrophic flooding, leading to more than 100 deaths and $125 billion in damages, making this the costliest tropical cyclone on record. More than 30,000 people were displaced, and more than 17,000 individuals were rescued.
- Tohoku Earthquake and Tsunami (2011) – approximately $35 billion
Also known as the “Great East Japan Earthquake”. On 11th March 2011 an undersea megathrust earthquake occurred in the Pacific Ocean, lasting approximately six minutes and causing a tsunami. This was the most powerful earthquake ever recorded in Japan and the fourth biggest earthquake the world has ever seen, causing $360 billion in damages.
- World Trade Center Attacks (2001) – approximately $40 billion
Also known as 9/11, the World Trade Center attacks were four coordinated suicide terrorist attacks, carried out by the Islamist extremist network al-Qaeda. These attacks killed nearly 3,000 people and resulted in approximately $40 billion in insurance losses, making these attacks one of the largest insured events in the history of the world.
- Hurricane Katrina (2005) – approximately $41.1 billion
Hurricane Katrina is the costliest tropical cyclone on record, causing $125 billion in damages and 1392 fatalities. The majority of this devastation was caused by flooding due in part to the hurricane and in part because of fatal engineering flaws in the flood protection system.
Some of the highest life insurance payouts recorded
There are many different types of insurance, life insurance is one of the most common. Although individual payouts for life insurance are not particularly large, collectively, life insurance payouts account for billions. Let’s take a look at the highest life insurance payouts recorded:
- A life insurance payout was made by MetLife in 2018, paid to a billionaire executive, the total payout amounted to $2.2 billion.
- Prudential Financial paid a massive $4.35 billion in 2014 to the beneficiary estate of a wealthy individual.
- A $4.9 billion life insurance payout was made by AXA Equitable Life Insurance in 2016, this time the beneficiary was a charitable foundation which was established by a billionaire investor.
- HSBC paid a huge $6 billion life insurance claim in 2012, although the beneficiary is undisclosed, we do know the recipient was a wealthy businessperson.
- One of the highest life insurance payouts was made by American International Group (AIG), who paid a massive $7.5 billion to the Federal Reserve Bank of New York.
The amount a life insurer pays out depends on the type of cover the individual has, the amount of cover they request and the amount they pay for their insurance. The more an individual pays for the life insurance policy, the bigger the payout is. The average life insurance payout rate is approximately 98%, indicating that most life insurance claims are successful.
Before an insurer will pay out on an insurance policy, they need to receive a claim form, which you can request from them at any time. As well as a completed claim form, you will also need to include copies of paperwork and any other evidence, to support your claim, this includes receipts and medical certificates. It is important to keep the originals of any evidence you provide, in case your claim is rejected or queried. The evidence you need to provide will vary depending on which type of insurance claim you are making, it is a good idea to understand what you need to provide before you begin your claim, to ensure it is successful.
When it comes to the largest insurance claim payouts, businesses and property owners often face significant losses that necessitate robust coverage. Falcon Insurance, a trusted provider of business and property insurance, understands the importance of safeguarding against unforeseen events. From natural disasters like floods and earthquakes to devastating incidents such as terrorist attacks, having comprehensive coverage is crucial for businesses and property owners. Falcon Insurance offers tailored solutions to protect their clients’ assets and investments, providing peace of mind and financial security in the face of potential risks. With their expertise in business insurance and property insurance, Falcon Insurance stands ready to support businesses and property owners in times of need, ensuring that they can recover and rebuild after major setbacks.