U.S. property/casualty insurers are expected to pay homeowners and businesses an estimated $6.025 billion for second quarter property losses resulting from a total of 16 catastrophes in 27 states, which is nearly double the number of catastrophes in the first quarter. U.S. insurers are expected to pay about $3.35 billion for first-quarter property losses resulting from nine catastrophes.

The insured property damage in the second quarter almost doubled the losses incurred in the first, according to preliminary analysis by Insurance Service Office’s Property Claim Services unit. PCS estimates the 16 catastrophes of second-quarter 2008 generated 1.22 million claims that averaged nearly $5,000 each.

At $1.08 billion, Texas topped the list of the five most severely affected states for the second quarter, followed by Minnesota at $810 million, Kansas at $578 million, Arkansas at $450 million, and Oklahoma at $425 million.

Second Quarter Catastrophe Losses Double (Insurance Journal 7/21/08)

July 22, 2008