North America

Dennis to cost US insurance industry $900mn

US property and casualty insurers are expected to pay policyholders in four states $900mn on claims for insured property losses from Hurricane Dennis, according to estimates by ISO's Property Claim Services (PCS) unit. Dennis caused much less damage than each of last year's four hurricanes but nearly matched this year's second-quarter catastrophe loss of $920mn. Dennis hit Haiti, Cuba then the US states of Florida, Alabama, Georgia and Mississippi. Florida suffered $640mn in losses to residential and commercial property and auto, followed by Alabama ($115mn), Georgia ($85mn) and Mississippi ($60mn). ISO estimates the event will generate slightly more than 126,000 claims from homeowners and businesses. ISO defines a catastrophe as an event that causes $25mn or more in insured property losses and affects a significant number of property/casualty policyholders and insurers. The ISO estimates take into account anticipated insured losses reflecting the total claims payment for personal and commercial property lines. The ISO estimates exclude loss adjustment expenses.