Quarterly CAT Loss Set At $675 Million

NU Online News Service, Oct. 24, 9:57 a.m. EST?Losses from six catastrophe level events over the past three monthswill cost property-casualty insurers $675 million, according to anestimate released yesterday.

That preliminary finding came from the Property Claim Servicesunit of Jersey City, N.J.-based Insurance Services Office.

ISO and PCS said the third-quarter insured-property losses fromhomeowners and businesses brings catastrophe losses to $3.7 billionfor the first nine months of this year.

ISO said that six events in 18 states ranging from Arizona toNew York generated nearly 260,000 claims for damage to personal andcommercial property and motor vehicles.

Indiana topped ISO's list for insured-property damage ($150million), followed by Wyoming ($98 million), Louisiana ($95million), Arizona ($75 million), and Virginia ($50 million).

ISO said catastrophe losses in the quarter were relatively lowbecause there were fewer tornadoes recorded by the National WeatherService? 196 compared with 273 last year, 247 in 2000, and 237 in1999.

Three catastrophes struck in September, making it the costliestmonth for insured losses at $380 million, by ISO's calculation.

Two separate windstorm events in Arizona and Utah and in theOhio Valley (Indiana, Kentucky and Ohio) caused $215 million ininsured damages, ISO said. Tropical Storm Isidore rounded out themonth when heavy rain and winds caused $165 million in insuredlosses in Louisiana, Mississippi, Alabama and Florida.

According to ISO figures for third-quarter catastrophe lossessince 1992, the highest total came last year when events of 9-11brought the figure to $20.7 billion. The next highest year was 1992when the third-quarter losses totaled $17.4 billion.

ISO's 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 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.The estimates exclude loss-adjustment expenses.