Property-casualty insurers' losses from 37 natural catastrophes last year will total $25.2 billion, the fourth highest cost in 10 years, according to preliminary figures from Property Claim Services.
PCS, a unit of Insurance Services Office in Jersey City, N.J., said 2008 saw the highest event frequency in a decade and Texas sustained the highest losses.
Insurers paid 3.9 million claims for damage in 40 states and more than 2.7 million personal lines claims accounted for 64 percent of the $25.2 billion loss, PCS estimated.
The company said 340,000 commercial lines claims accounted for 27 percent of the total loss and 876,000 vehicle losses accounted for 9 percent.
Causing the 37 catastrophes were hurricanes, severe weather, winter storms and tropical storms.
Hurricanes caused the largest loss, currently estimated at $13.3 billion in insured damage. Severe weather events–those producing damaging winds, large hail, tornadoes and flooding–caused an estimated $10.5 billion in losses. Winter storms resulted in more than $1 billion in losses, and two tropical storms cost insurers $300 million of the total $25.2 billion loss, said PCS.
Among the states seeing the largest losses were Texas, $10.2 billion; Louisiana, $2.2 billion; Minnesota, $1.6 billion; Ohio, $1.3 billion; and Georgia, $1 billion.
Gary Kerney, PCS assistant vice president, said in a statement there are several extraordinary characteristics of the 2008 catastrophes. Foremost, said Mr. Kerney, are the six consecutive tropical systems that made landfall on U.S. coastlines.
Hurricanes Dolly, Edouard, Fay, Hanna, Gustav and Ike struck along the coastline stretching from southern Texas to Virginia. Unusually frequent tornado touchdowns and related insured property damage contributed to record-setting frequency and significant losses in the first six months of 2008, Mr. Kerney noted. All of this activity was followed by a very quiet fourth quarter in which PCS declared only one catastrophe–a winter storm in mid-December.
The 37 catastrophes in 2008 are the highest frequency in a decade, tying the number of catastrophes in 1998, 11 years ago.
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.
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