U.S. P/C Insurers’ Paid $2.1 Billion for 2d Quarter Catastrophes

July 10, 2007

U.S. property/casualty insurers 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 — tying the record for the second-lowest number of catastrophes in a second quarter in the past 10 years, according to preliminary analysis by ISO’s Property Claim Services (PCS) unit.

PCS estimates the six catastrophes of second-quarter 2007 generated 504,000 claims. Year to date, the estimated number of claims is 709,000.

At $435 million, Texas topped the list of the five most severely affected states, 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.

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. PCS estimates represent anticipated insured loss on an industrywide basis arising from catastrophes. The estimates exclude loss adjustment expenses.

Source: ISO

Was this article valuable?

Here are more articles you may enjoy.