U.S. property/casualty insurers are expected to pay homeowners and businesses an estimated $2.175 billion for second-quarter property losses resulting from a total of six catastrophes in 25 states — tying the record for the second-lowest number of catastrophes in a second quarter in the past 10 years, according to preliminary analysis by ISO’s Property Claim Services (PCS) unit.
PCS estimates the six catastrophes of second-quarter 2007 generated 504,000 claims. Year to date, the estimated number of claims is 709,000.
At $435 million, Texas topped the list of the five most severely affected states, followed by Minnesota at $322 million, Kansas at $210 million, New Jersey at $160 million, and New York at $130 million.
The costliest event of the quarter — caused by strong winds, large hail, tornadoes, and flooding — occurred in mid-April and affected 18 states and the District of Columbia. The current PCS estimate of insured property damage for this event is $1.225 billion.
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. PCS estimates represent anticipated insured loss on an industrywide basis arising from catastrophes. The estimates exclude loss adjustment expenses.
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