Property-casualty insurers are expected to pay an estimated $3.7 billion in catastrophe claims for homeowners', businesses' and auto owners' damage in the second quarter of the year, according to Property Claim Services (PCS).
PCS, a unit of Jersey City, N.J.-based Insurance Services Office, said this year's second quarter ranks fourth highest in insured catastrophe claim payments for a second quarter over the past 10 years, and brings total estimated catastrophe payments for the first half to $5.2 billion.
At $6.2 billion, the second quarter of 2001 posted the greatest amount paid for catastrophe-driven property losses in the last 10 years, said PCS.
This year's second-quarter losses resulted from 13 PCS-designated catastrophes. Second quarter catastrophes caused insured damage in 24 states and the District of Columbia. PCS said it estimates policyholders will file nearly 1 million claims as a result.
According to PCS, personal property losses represent 61 percent of all 2006 second-quarter claims, while commercial property losses make up 15 percent and commercial and personal vehicle losses account for 24 percent.
According to PCS, this year's second quarter also ranks second in frequency of catastrophic events with 13–tying 1999 and behind 1998, when 16 catastrophes were named. The second quarters of 2003 and 2005 had the fewest catastrophes among second quarters in the last 10 years with four apiece.
Among the states, the greatest total insured loss of the second quarter was in Indiana, with claims totaling an estimated $658.5 million, PCS found. Tennessee followed with $655 million; Texas, $623.5 million; Kansas, $404 million, and Kentucky, $186.5 million.
There were no man-made catastrophic events in the second quarter, said PCS. The disasters reported were from severe weather, including high winds, large hail, tornadoes and widespread flooding.
At $5.2 billion, the first half of 2006 ranks fifth in first-half insured catastrophe losses over the last 10 years. The worst first half was in 2001 with $6.9 billion in catastrophe losses, followed by the first half of 2003 with $6.5 billion, PCS said.
PCS defines a catastrophe as an event causing $25 million or more in insured property losses and affecting a significant number of policyholders and insurers.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.