April, May, and June 2008 are unlikely to be remembered fondly by U.S. insurers, as the three month span saw property losses estimated at over $6 billion.
The insured property damage in the second quarter almost doubled the losses incurred in the first, according to preliminary analysis by ISO's Property Claim Services (PCS) unit. Property/casualty insurers are expected to dish out roughly $6.025 billion for second-quarter property losses resulting from 16 catastrophes in 27 states — almost twice the number of catastrophes in the first quarter.
ISO's PCS unit defines a catastrophe as an event that causes $25 million or more in insured property losses and affects a significant number of policyholders and insurers.
It is estimated that the 16 catastrophes of second-quarter 2008 generated 1,223,500 claims that averaged nearly $5,000 each.
At $1.08 billion, Texas topped the list of the five most severely affected states, followed by Minnesota at $810 million, Kansas at $578 million, Arkansas at $450 million, and Oklahoma at $425 million.
2008's saw the costliest second quarter since 2001, when insured losses reached $6.24 billion.
A complete summary of second-quarter losses and number of catastrophes since 1999:
Year
Insured Loss ($)
# of catastrophes
1999
3.50 billion
13
2000
1.46 billion
10
2001
6.24 billion
9
2002
2.79 billion
10
2003
5.05 billion
4
2004
2.33 billion
6
2005
930 million
4
2006
5.04 billion
13
2007
2.3 billion
6
2008
6.03 billion
16
For more information, visit ISO's PCS unit online.
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