2008 a Rough Year for Texas Insurers

October 28, 2008

Insured losses in Texas lead all other states by a wide margin as claims from the state’s hurricanes continue to pour in, the Insurance Council of Texas (ICT) reported. Insured losses from the first three quarters of 2008 amount to $7.7 billion for Texas. The figure is expected to top $10 billion by the end of the year.

“Texas leads all other states by several billion dollars because of the damage caused by Hurricanes Ike and Dolly,” said Mark Hanna, a spokesman for the ICT. “Violent thunderstorm activity primarily in north and central Texas in the first six months of the year resulted in an additional $1 billion in losses.”

The Insurance Services Office (ISO) reports that the U.S. had 35 catastrophes during the first three quarters of the year resulting in 3.5 million claims. The costliest damages occurred in the past quarter from Hurricanes Ike, Dolly and Gustav.

The insured losses from Hurricane Ike that struck Texas on Sept.13 could exceed $10 billion. The storm caused $1.2 billion in insured losses in Ohio.

The losses from Hurricane Gustav that struck in Louisiana on Sept.1, have reached $1.9 billion and insured losses from Hurricane Dolly which struck South Padre Island and south Texas on July 23, could reach $1 billion.

“Thankfully, Texas insurers had some good years prior to 2008 that financially prepared them for what they are going through this year,” said Hanna.

2008 Insured Losses to Date

Texas: $7.75 billion
Louisiana: $1.96 billion
Minnesota: $1.58 billion
Ohio: $1.3 billion
Georgia: $1.04 billion

Source: The Insurance Council of Texas, www.insurancecouncil.org

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