Residual property risks: North Carolina and Florida bear brunt

T he losses suffered by the US residual markets for property risks in 1999 stemmed mainly from the havoc caused by hurricanes Floyd and Bret in North Carolina and Florida, but the overall experience showed a big improvement on 1998. The 1999 combined loss for the market was $147.9mn, compared with a loss of $267.1mn the year before. This result was helped by a much improved catastrophic loss experience, according to the annual study produced by the Alliance of American Insurers (AAI)*. WIR looks at the underwriting performance of the state-run residual property risks market plans .