ISO Reports Nearly $2B in Catastrophe-Related Damages

July 26, 2002

Catastrophes resulted in approximately $1.97 billion in insured property damage in the second quarter of 2002, according to preliminary estimates released by the Insurance Services Office Inc.’s Property Claim Services unit.

The majority of the damage was the result of wind, hail, tornadoes and flooding, as well as by the recent wildfires in Arizona, according to PCS. The most severe catastrophe took place between April 27 and May 3, when a severe weather system battered 17 states, causing an estimated $855 million in insured losses. The PCS declared 10 catastrophes in the second quarter.

Catastrophe losses for the first half of 2002 now sit at an estimated $2.55 billion, or half the $5.1 billion toll recorded in the first six months of 2001. The first half of 2001 ranks as the fourth-costliest six-month period since 1992.

Second-quarter 2002 losses were far short of those recorded during the same period a year ago, when Tropical Storm Allison and a Midewestern storm system were the main factors behind total insured property damages of more than $6 billion.

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