ISO Now Puts Tornado Claims At $1.55 Billion

NU Online News Service, May 21, 8:50 a.m.EDT?Insurance Services Office Inc. said today it estimatesinsured property-loss claims from thunderstorms and tornadoes thattouched down across the country earlier this month would reach$1.55 billion.

According to a preliminary estimate by Jersey City, N.J.-basedISO's Property Claim Services unit, insurers will receive more than429,000 claims from auto, residential and commercial policyholdersaffected by hail, wind, flooding and more than 400 tornadoes.

This estimate, the group said, is based on a survey of some 70percent of insurers writing residential, commercial and automobilepolicies in the affected states.

In a historical context, the estimated insured losses from theMay windstorm event would rank it as the third-highest ever. Thecostliest insured loss in a windstorm catastrophe would stillbelong to the windstorm event from April 2001, which affected 16states and cost $2.2 billion in insured losses.

An April 2002 event cost $1.7 billion in losses that reached 17states.

Gary Kerney, PCS assistant vice president, noted that this isstill a preliminary estimate. "We will review our initial lossestimate in the next 60 days, which could change the dollar figuresand the claim count," he said.

According to the ISO estimate, Tennessee sustained the highestinsured losses, with $310 million from an estimated 77,000 claims.It is followed by Missouri, with estimated losses of $275 millionfrom 62,000 claims. Next is Oklahoma, with $245 million inestimated losses and some 55,500 claims.

Following those states in order of damage are, Nebraska,Georgia, Illinois, and North Carolina.