Insurance Services Office said that insurers' third-quarter losses of $40.8 billion were an all-time record and had made this the costliest year for catastrophes.
The Jersey City, N.J.-based risk management products firm cited figures from its Property Claim Services unit.
According to preliminary PCS estimates, Hurricane Katrina and six other natural catastrophes in the period led U.S. property-casualty insurers to pay a record $40.8 billion to homeowners and businesses for insured property losses in 14 states, making 2005 the costliest year for catastrophe damage.
The quarter's catastrophe losses compare with the $23.7 billion loss in third-quarter 2004--the industry's previous worst third quarter--and $3.7 billion in third-quarter 2003.
For the first nine months ISO said insured losses now stand at $43.8 billion from 19 catastrophic events in 37 states--the industry's worst nine-month period ever--compared with $24.7 billion during the same period last year.
PCS estimated the quarter produced nearly 2.3 million claims for damage to personal and commercial property, vehicles and boats.
At $34.4 billion, Hurricane Katrina was the quarter's costliest event, followed by Hurricanes Rita, $4.7 billion, and Dennis, $1.1 billion, PCS said.
Louisiana was the hardest-hit state with $25.04 billion in insured losses, followed by Mississippi at $9.9 billion, Texas at $2.2 billion, Alabama at $1.5 billion, and Florida at $1.3 billion.
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 property/casualty policyholders and insurers.
PCS estimates, ISO noted, represent anticipated insured loss on an industrywide basis arising from catastrophes, reflecting the total insurance payment for personal and commercial property lines of insurance covering fixed property, personal property, vehicles, boats, related property items, business interruption and additional living expenses. The estimates exclude loss adjustment expenses.
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