ISO Estimates Insurers’ 3rdQ Catastrophe Losses Reach $675M

October 24, 2002

Insurers are expected to pay $675 million to homeowners and businesses for insured-property losses from six catastrophic events in the third quarter of this year, according to preliminary estimates by the Insurance Services Office, Inc.’s (ISO) Property Claim Services (PCS) unit. This brings catastrophe losses to $3.7 billion for the first nine months of 2002.

Six events in 18 states ranging from Arizona to New York generated nearly 260,000 claims for damage to personal and commercial property and motor vehicles, ISO said.

Indiana topped the list for insured-property damage ($150 million), followed by Wyoming ($98 million), Louisiana ($95 million), Arizona ($75 million) and Virginia ($50 million).

Catastrophe losses in the quarter were relatively low because there were fewer tornadoes as recorded by the National Weather Service —196 compared with 273 last year, 247 in 2000 and 237 in 1999.

Three catastrophes struck in September, making it the costliest month for insured losses at $380 million. Two separate windstorm events in Arizona and Utah and in the Ohio Valley (Indiana, Kentucky and Ohio) caused $215 million in insured damage. Tropical Storm Isidore rounded out the month when heavy rain and winds caused $165 million in insured losses in Louisiana, Mississippi, Alabama and Florida.

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