ISO: P/C Cat Claims Doubled in Second Quarter
According to preliminary analysis by Insurance Service Office's Property Claim Services unit, U.S. property/casualty insurers are expected to shell out an estimated $6.025 billion to homeowners and businesses for second-quarter property losses as a result of 16 catastrophes in 27 states, nearly double the number of catastrophes in the first quarter.
PCS estimates the 16 catastrophes of second-quarter 2008 generated 1,223,500 claims that averaged nearly $5,000 each. At $1.08 billion, Texas was at the top of the list of the five most severely affected states for the second quarter, followed by Minnesota at $810 million, Kansas at $578 million, Arkansas at $450 million, and Oklahoma at $425 million.
The costliest event of the quarter -- caused by the effects of severe weather -- occurred in May and affected seven states from Colorado and Wyoming to Minnesota. The current PCS estimate
of insured property damage for this event is $850 million.
U.S. insurers are expected to pay about $3.35 billion for first-quarter property losses resulting from nine catastrophes.
Insured losses for the second quarter last year totaled about $2.3 billion from six catastrophic events, according to PCS.
About ISO PCS
ISO's PCS unit defines a catastrophe as an event that causes $25 million or more in insured property losses and affects a significant number of policyholders and insurers. The estimates reflect the total insurance payment for personal and commercial property items, business interruption, terrorism, workers compensation, and additional living expenses. The estimates exclude loss adjustment expenses.
Source: Source: ISO | Published on July 21, 2008
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