ISO: Quarterly Cat Loss Totals $1.97 Billion

NU Online News Service, July 26, 11:59a.m. EST? Insured property losses from 10 catastropheevents in the second quarter will cost carriers an estimated $1.97billion this year--far less than in the same period last year,according to the Insurance Services Office, Inc. in Jersey City,N.J.

ISO's Property Claim Services unit, which made the preliminarycalculation of payouts to homeowners and businesses, reported thatexcept for the late-June Arizona wildfires, all second-quarterevents were caused by the wind, hail, tornadoes and flooding thataccompanied strong thunderstorms.

The largest catastrophe of the quarter was created by a severeweather system, between April 27 and May 3, which representednearly half the total loss for the period. These storms producednearly 250,000 claims in 17 states, with a total insured lossestimated at $855 million, ISO said.

The estimated second-quarter insured loss dropped dramaticallyfrom last year's exceptionally high total of more than $6 billion,ISO said.

Last year's high catastrophe number was caused by Tropical StormAllison and a second storm system that produced widespread damage,particularly around St. Louis. Both of those storms are among thetop-10 costliest catastrophes.

ISO said that four catastrophes in April, three in May, andthree in June caused damage in 29 states. Six events occurred inTexas, and four in Missouri. Illinois and Kansas each had threecatastrophes.

? Texas incurred the largest amount of insured damage, currentlyestimated by ISO at $455 million.

? Illinois was second, with an estimated $205 million.

? Maryland sustained $170 million in insured property loss.

? Kentucky's losses totaled $130 million.

? Arizona, Tennessee and Virginia each had property damagetotaling $120 million.

PCS estimates that the 10 second-quarter catastrophes generatedapproximately 550,000 claims, including 290,000 personal lineslosses, 50,000 commercial losses, and 210,000 vehicle losses. Thesecond quarter is typically active, averaging 12 catastrophes overthe past 10 years, ISO noted.

The following is a recap of recent second-quarter catastropheactivity listing the year, number of catastrophes, insured losses,and number of claims.

? 2002--10 catastrophes, causing $1.97 billion in insureddamages on 550,000 claims.

? 2001--nine catastrophes, causing $6.24 billion in losses on1.03 million claims.

? 2000--10 catastrophes, causing $1.46 billion in damages from550,000 claims.

? 1999--12 catastrophes, $3.5 billion in losses on 1.4 millionclaims.

? 1998--16 catastrophes, $4.52 billion in losses from 1.69million claims.

? 1997--nine catastrophes, $980 million in losses from 480,000claims.

? In 1996--12 catastrophes, causing $1.70 billion in losses from880,000 claims.

The PCS unit defines a catastrophe as an event within aparticular territory that causes $25 million or more in insuredproperty losses and affects a significant number of property andcasualty policyholders and insurers.

PCS said its estimates represent anticipated insured loss on anindustrywide basis arising from catastrophes, reflecting the totalnet insurance payment for personal and commercial property lines ofinsurance covering fixed property, personal property, vehicles,boats, related property items and business-interruption losses. Theestimates exclude loss-adjustment expenses.