Claims News Service, July 25, 9:59 a.m. EDT — Property-casualty insurers are expected to pay homeowners, businesses, and auto owners around $3.7 billion in catastrophe claims for events that happened from April to June this year, said a recent report from Insurance Services Office's Property Claim Services unit.
Bringing total estimated catastrophe payments for the first half of the year up to $5.2 billion, 2006′s second quarter ranks fourth highest in insured catastrophe claim payments for second quarters over the past 10 years. Ranked first is the second quarter of 2001, when catastrophe losses totaled more than $6 billion.
Additionally, 2006′s second quarter ranks second in terms of catastrophic event frequency with 13. (Tied are 1999 and 1998 with 16 named catastrophes). Severe weather — including high winds, large hail, tornadoes, and widespread flooding — was responsible for all the losses.
Policyholders will file nearly 1 million claims as a result of damages from second-quarter catastrophes, ISO estimated. Personal property losses represent 61 percent of all second-quarter claims, while commercial property losses make up 15 percent, and vehicle losses account for 24 percent.
According to ISO, among the most severely affected states was Indiana, which sustained second quarter losses totaling an estimated $658.5 million. Tennessee had losses of $655 million, followed by Texas at $623.5 million, Kansas at $404 million, and Kentucky at $186.5 million.
More information is available at www.iso.com.
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