ISO Estimates Carriers to Pay $2.18 Billion in Second-Quarter Cat Claims
According to a preliminary analysis by ISO’s Property Claim Services (PCS) unit, P/C carriers in the United States are expected to pay homeowners and businesses an estimated $2.175 billion for second-quarter property losses resulting from a total of six catastrophes in 25 states. This amount ties the record for the second-lowest number of catastrophes in a second quarter in the past ten years, according to PCS.
PCS estimates the six catastrophes of second-quarter 2007 generated 504,000 claims. Year to date, the estimated number of claims is 709,000.
Texas topped the list of the five most severely affected states with $435 million paid, followed by Minnesota at $322 million, Kansas at $210 million, New Jersey at $160 million, and New York at $130 million.
The costliest event of the quarter — caused by strong winds, large hail, tornadoes, and flooding — occurred in mid-April and affected 18 states and the District of Columbia. The current PCS estimate of insured property damage for this event is $1.225 billion.
PCS estimates represent anticipated insured loss on an industry-wide basis arising from catastrophes. Estimates reflect the total insurance payment for personal and commercial property lines of insurance covering fixed property, personal property, vehicles, boats, related property items, business interruption, and additional living expenses. The estimates exclude loss adjustment expenses.
Source: Source: ISO | Published on July 11, 2007
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