In 2006, largest P/C losses occurred inland

Coastal states got a relative reprieve in 2006, while inland states racked up most of the nation’s property/casualty losses for the year. According to the Insurance Services Office’s Property Claim Services (PCS), the states where insurers reported the largest catastrophe losses for 2006 included Indiana, Missouri, Tennessee and Kansas. Texas also made the top five in catastrophe losses. The industry’s unit identified 33 catastrophe events in 2006. Together these events cost insurers an estimated $8.8 billion.

The 33 events caused insured property damage in 34 of the 50 states and the District of Columbia. The states with the larges losses include: Indiana, $1.5 billion; Missouri, $878 million; Tennessee, $873 million; Texas, $688 million; and Kansas, $601 million. The catastrophe losses in these five states represent half of the total catastrophe losses in the United States for the year, according to PCS.

Losses from catastrophe events declined sharply in 2006 but were still at their sixth highest level since 1997. The frequency of catastrophe events rose last year to its second highest level in a decade. PCS estimates that insurers received 2,272,000 claims for damage to personal and commercial properties and vehicles. Personal lines claims accounted for 58 percent of the total, while commercial lines claims were at 9 percent and vehicle claims at 33 percent.