Claims News Service, Nov. 1, 11:50 a.m. EST -- U.S.property/casualty insurers will pay an estimated $4.7 billion forinsured property losses to residential and commercial policyholdersaffected by Hurricane Rita, according to preliminary analysis byISO's Property Claim Services (PCS) unit.

Rita hit homes and businesses hard in seven states, though notas severely as initially feared. Louisiana sustained the highestlosses -- $2.4 billion, which accounts for nearly half thecatastrophe's total price tag. Texas came second with $2.2 billionin losses.

Insurers expect more than 400,000 claims from policyholders inthe affected states for damage to personal and commercial property,automobiles, and boats and yachts.

"Demand surge" will be a factor affecting insurers' ultimatepayments to policyholders along the entire Gulf Coast region. Therecovery process is likely to be prolonged because constructionpersonnel themselves from the region were displaced or forced toevacuate. Higher material and labor costs are also expected toexacerbate the rebuilding process, as is the prospect that manyproperty owners might choose not to return to or restore theirproperties.

PCS estimates represent anticipated insured loss on anindustrywide basis arising from catastrophes, reflecting the totalinsurance payment for personal and commercial property lines ofinsurance covering fixed property, personal property, vehicles,boats, related property items, business interruption and additionalliving expenses. The estimates exclude loss adjustmentexpenses.

More information is available at www.iso.com.