Fitch Ratings says the insurance industry should be able tomanage losses from Hurricane Isaac, which, according to very earlyestimates, could range from $300 million to $7.5 billion.

State Farm and Allstate, which together control 39 percent ofthe homeowners market in the three most affected states (Louisiana,Mississippi and Alabama), according to SNL Financial figures, willlikely suffer the brunt of the insured losses.

Combining Homeowners with auto physical damage, commercial autoand commercial multiple peril (liability) insurance, the twoinsurers control 37 percent of the market in the three states.

Fitch cited an early AIR Worldwide estimate that puts insuredlosses from Isaac at possibly between $300 million and $7.5billion.

R Street, a non-profit public policy organization, cites anarrower early Eqecat estimate of between $500 million and $1.5billion.

Isaac has been downgraded to a tropical storm but is stillpounding Louisiana. Fitch says the losses from the storm would makeup a “modest 1 percent or less of U.S. industry statutorycapital.”

According to R Street, Isaac could be the first hurricane totrigger a catastrophe bond issued by a state-run insurer. The $125million Pelican Re bond, issued by the Louisiana Citizens, would betriggered if the storm produces more than $200 million in insuredlosses.

Media representatives for State Farm and Allstate say it isstill too early to gauge losses, but they have resources positionedto go into damaged areas as soon as the storm passes and claimsrepresentatives can gain access.

Gary Stephenson, a spokesman for State Farm in Louisiana, saysthe slow movement of the storm is delaying claims representativesfrom getting into damaged areas, but it is anticipated that therewill be a lot of wind damage in the form of damaged shingles onhomes and downed trees.

He said flooding is expected to be experienced statewide, but atleast the winds are expected to die down after the storm leaves thecoast.

“It may not be devastating, but there is no doubt that a largenumber of people will be affected,” says Stephenson.

State Farm's Roszell Gadson, says in Mississippi and Alabama,the potential for tornadoes in the aftermath of Isaac has people onwatch.

“We're telling homeowners to stay alert and aware and takeprecautions,” says Gadson.

Allstate's spokeswoman April Eaton says the company has 1,000claims personnel ready to move into the region, but they arewaiting for the storm to end. New mobile units are prepared to getinto the most heavily damaged areas and contact customers insteadof waiting for them to call the company first.