2001 WORST YEAR FOR P&C COS

According to a report released by the Insurance Services Office (ISO), U.S. property and casualty insurers paid $24 billion in claims for 2001—the largest amount ever—mainly a result of the terrorist attacks on the World Trade Center. More than $16 billion were related to the terrorist attacks. While the $24 billion amount is staggering, it could be adjusted even higher depending on the outcome of lawsuits related to 9/11. Last year, insurers only paid out $4.3 billion in claims. Also part of the 2001 tally, insurers paid out $2.5 billion because of destruction caused by Tropical Storm Allison and $1.9 billion as a result of a St. Louis hailstorm.