Isabel Loss Estimate Jumps To $1.17 Billion

By Gary Mogel

NU Online News Service, Oct. 2, 4:20 p.m.EDT?Loss estimates from Hurricane Isabel are increasingover initial projections of $1 billion, according to insurer dataorganizations and individual insurer estimates.

Jersey City, N.J.-based Insurance Services Office's PropertyClaim Services Unit said in a statement that insurers are expectedto pay about $1.17 billion in losses related to the Sept. 18-19storm that struck several Middle Atlantic states. Total anticipatedclaims are 458,000, according to ISO.

Previous estimates by New York-based Insurance InformationInstitute and Newark, Calif.-based Risk Management Solutions, Inc.were $1 billion in insured losses.

ISO spokesperson Dave Dasgupta explained that the PCS estimateis based on a survey of actual claims that have been received byinsurers, and then making a projection of the total losses thatwill have to be paid.

"The estimates from other organizations are based oncomputer-generated catastrophe models," Mr. Dasgupta said. "Theydid not talk to the insurance companies."

One insurer alone--Nationwide Mutual Insurance Co.?on Oct. 1estimated that it will have 70,000 claims related to HurricaneIsabel, and that its insured losses could reach $235.5 million.

Nationwide's projected breakdown of the losses by line ofcoverage are $214 million for homeowners claims, $12.5 million inauto claims, $1.1 million in boat claims, and $7.9 million incommercial claims.

The Columbus, Ohio-based insurer said in a statement that windand water damage were a leading cause of losses for manyhomeowners. As of Tuesday, policyholders had reported 56,092claims.

"Our preliminary loss projections indicate that Virginia washardest hit," noted Ken Enscoe, Nationwide's director ofcatastrophe claims operations. "We project more than 900 large losshomeowners claims--losses of $25,000 or more--and a total of 30,000homeowners claims in that state."

According to ISO, the states that suffered the most losses areVirginia ($450 million), Maryland including Washington, D.C. ($410million), and North Carolina ($170 million).