US cat losses 2007

North America

US property/casualty insurers are expected to pay an estimated $6.5bn to homeowners and businesses in insured property losses from 23 catastrophes in 2007 – the eighth lowest cost in a decade and the seventh lowest frequency for the same period, according to preliminary analysis by ISO’s Property Claim Services Unit (PCS). The relatively low catastrophe claims cost last year was largely due to the lack of major hurricanes impacting the US. With the exception of Humberto, which struck parts of Texas and Louisiana in September with estimated damages of $50mn, no other hurricane made landfall on US territory in 2007. Last year’s catastrophes resulted in more than 721,000 personal lines claims costing $4.4bn, the PCS estimated. Commercial lines claims amounted to 144,000 at an estimated cost of $1.3bn, while 315,000 vehicle claims cost insurers around $800mn. Overall, PCS said that insurers paid 1.18mn claims for catastrophe damage in 41 states. The 23 catastrophes comprised 17 severe weather events – wind, hail, tornadoes, and flooding – five winter storms, and one wildfire. The costliest catastrophe events for insurers in 2007 were severe weather that resulted in $1.35bn of insured damage from Texas to Maine, and the wildfire in San Diego County, California, which resulted in an estimated $1.1bn in losses.