Report: Insurers to Pay Estimated $2.18 Billion in Second-Quarter Catastrophe Claims

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 ten years, according to preliminary analysis by ISO’s Property Claim Services 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. 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: ISO’s Property Claim Services unit news release

Posted: Tuesday, July 10, 2007 12:00:00 AM. Modified: Tuesday, July 10, 2007 1:07:27 PM.

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