U.S. property/casualty insurers are expected to pay homeowners and businesses an estimated $1.125 billion for third-quarter property losses resulting from a total of six catastrophes in 11 states, according to preliminary analysis by ISO’s Property Claim Services (PCS) unit.
PCS estimates the six catastrophes of third-quarter 2007 generated 260,000 claims. Year-to-date, catastrophes have caused approximately $4.7 billion in insured property damage resulting from an estimated 997,000 claims nationwide.
Third-quarter catastrophes struck 11 states across the Midwest from Colorado to Pennsylvania. Minnesota and Illinois were affected by three of the six catastrophic events and suffered the greatest insured property damage from the storms.
During the third quarter, 62 percent of the total loss affected personal lines risks, with 20 percent affecting commercial lines and 18 percent involving loss to vehicles.
PCS has also published its final estimate for Hurricane Katrina, which struck the Gulf Coast in 2005. Approximately $41.1 billion is related to nearly 1.75 million claims reported in the aftermath of the hurricane.
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. Estimates reflect the total insurance payment for personal and commercial property lines of insurance covering fixed property, personal property, vehicles, boats, related property items, business interruption, and additional living expenses. The estimates exclude loss adjustment expenses.
Source: ISO’s Property Claim Services
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