Top 10: Largest Insurance Payouts

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We look at some of the largest payouts ever made by insurance brokers
InsurTech Digital explores 10 of the costliest insurance payouts of all time, delving into the context behind them and the shockwaves that followed

The insurance sector has borne some of the most significant financial impacts in history, particularly in the wake of natural disasters and unprecedented, catastrophic events. From hurricanes and earthquakes to unprecedented storms, these incidents have resulted in staggering insurance payouts that not only reflect the devastation caused but also highlight the evolving landscape of risk management and coverage.

As climate change continues to influence weather patterns and increase the frequency of extreme events, understanding these monumental insurance payments offers valuable insights into the industry's challenges and opportunities. In this article, we explore 10 of the largest insurance payments ever recorded, shedding light on the brokers most affected and the lessons learned from each event.

P.S. We are only including traditional insurance payouts in this list, rather than bailouts subsidised by national governments. Whilst not a traditional insurance claim, the U.S. government's bailout of AIG during the 2008 financial crisis - totalling an eyewatering US$81bn - was effectively an enormous insurance payment. For the purposes of this article, however, we are only including claims and payouts made through insurance companies. On with the list!

10. Storm Kyrill

Year: 2007

Total payout: US$10bn

Most affected broker: Munich Re, which faced claims of approximately US$1.5bn

Storm Kyrill swept across Europe in early 2007, devastating ecosystems and settlements alike

In January 2007, Storm Kyrill swept across northern Europe, causing widespread damage in Germany, the UK, Netherlands, and several other countries. This extratropical cyclone brought hurricane-force winds, leading to significant property damage, infrastructure disruption and multiple fatalities. The insurance industry faced payouts totalling approximately US$10bn, making it one of the costliest European windstorms on record.

9. Thailand Floods

Year: 2011

Total payout: US$12bn

Most affected broker: Thai Reinsurance Public Company Ltd.

In 2011, 65 of Thailand's 76 provinces were declared 'flood disaster zones'

Severe monsoon rains caused widespread flooding in Thailand, affecting millions and disrupting global supply chains. The insurance payout covered property damage, business interruption, and industrial losses. This event highlighted the interconnectedness of global risks and the importance of supply chain insurance.

8. Hurricane Maria

Year: 2017

Total payout: US$18bn

Most affected broker: Triple-S Management Corporation, Puerto Rico's largest insurer

Hurricane Maria devastated Puerto Rico and many other islands in the Caribbean Sea

This Category 5 hurricane devastated Puerto Rico and other Caribbean islands. The insurance payout covered extensive property damage, business interruption, and infrastructure losses. Maria's impact underscored the challenges of insuring against extreme weather events in vulnerable regions.

7. Hurricane Harvey

Year: 2017

Total payout: US$19bn

Most affected broker: State Farm Insurance, with estimated payouts of US$1.9bn

In 2017, Hurricane Harvey hit the US, wreaking the most havoc in Texas

This Category 4 hurricane caused catastrophic flooding in Texas, particularly in the Houston metropolitan area. The massive payout covered flood damage to homes and businesses, as well as vehicle losses. Harvey emphasised the need for better flood insurance coverage in vulnerable areas.

6. Deepwater Horizon Oil Spill

Year: 2010

Total payout: US$20.8bn

Most affected broker: Lloyd's of London, which faced claims of approximately US$1.3bn

The Deepwater Horizon Oil Spill was the largest spill ever seen, before and since | Credit: Green Fire Productions

The largest marine oil spill in history led to significant insurance payouts. Claims covered environmental damage, business interruption and clean-up costs. This event reshaped marine and energy insurance, emphasising the importance of robust environmental liability coverage.

5. California Wildfires

Year: 2017-2018

Total payout: US$24bn

Most affected broker: State Farm Insurance, with estimated payouts of US$1.9bn for the 2018 Camp Fire alone

Thanks to climate change, wildfires are now occurring with an unprecedented frequency | Credit: Getty

A series of devastating wildfires in California resulted in massive insurance payouts over two years. Claims covered property damage, business interruption, and evacuation costs. These events have led to a reassessment of wildfire risk and insurance pricing in fire-prone areas.

4. Hurricane Sandy

Year: 2012

Total payout: US$36bn

Most affected broker: AIG, which faced claims of approximately US$2bn

Hurricane Sandy made landfall around New Jersey and New York City, one of the US's most populous areas

Also known as Superstorm Sandy, this hurricane caused catastrophic damage along the East Coast of the United States. The insurance payout covered extensive property damage, business interruption, and flood losses across multiple states.

3. Tohoku Earthquake and Tsunami

Year: 2011

Total payouts: US$35bn

Most affected broker: Tokio Marine Holdings, which paid out around US$2.4bn in claims

The 2011 earthquake that hit Japan caused a tsunami, which in turn caused one of the worst nuclear disasters the world has ever seen, in Fukushima | Credit: JAEA Imagebank

On March 11, 2011, Japan experienced one of its most catastrophic natural disasters: a magnitude 9.0 earthquake followed by a powerful tsunami that devastated coastal regions. The disaster led to significant loss of life—over 18,000 people—and caused extensive damage to infrastructure and homes.

The insurance payouts reached approximately US$35bn, covering property damage, business interruptions and losses related to the Fukushima nuclear disaster that ensued due to tsunami impacts. This event underscored the importance of robust disaster preparedness and risk mitigation strategies within the insurance sector. It also sparked global discussions on nuclear safety and disaster response frameworks in seismically active regions.

2. 9/11 Terrorist Attacks

Year: 2001

Total payout: US$40bn

Most affected broker: Swiss Re, which faced claims of approximately US$2bn

Ground Zero, after the 9/11 terrorist attacks | Credit: slagheap via Openverse

The September 11th attacks on the World Trade Center and Pentagon marked a tragic turning point in history and had profound implications for the insurance industry. On that fateful day in 2001, nearly 3,000 lives were lost as terrorists hijacked commercial airplanes to carry out coordinated attacks.

The insurance payouts totalled approximately US$40bn, covering extensive property damage, business interruption losses and life insurance claims for the victims’ families. This unprecedented event reshaped how insurers assessed risk related to terrorism and prompted new policies to address such threats. The aftermath saw a significant increase in premiums and changes to coverage terms across the industry.

1. Hurricane Katrina

Year: 2005

Total payouts: US$41bn

Most affected broker: State Farm Insurance, which paid out over US$3.8bn in claims

Hurricane Katrina devastated towns and cities all around the Gulf of Mexico in 2007 | Credit: News Muse

Hurricane Katrina, which struck in August 2005, remains the costliest natural disaster in U.S. history. This Category 5 hurricane devastated the Gulf Coast, particularly New Orleans, where levees failed and massive flooding ensued.

The storm caused widespread destruction, displacing hundreds of thousands and resulting in nearly 1,800 fatalities. Insurers faced an overwhelming number of claims for property damage, business interruption, and loss of life, leading to a staggering payout of over $41 billion.

This disaster not only highlighted the vulnerabilities in urban infrastructure but also prompted significant changes in insurance practices and disaster preparedness across the nation.


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