Insurers to Pay $580M Related to Insured-Property Damage in 1stQ 2002

Insurers are expected to pay $580 million to homeowners and businesses for insured-property losses from three catastrophe events in the first quarter this year—the lowest first-quarter loss in more than a decade—according to preliminary estimates by Insurance Services Office, Inc.’s (ISO) Property Claim Services (PCS) unit. The previous low first quarter was $705 million for 2001.

Three events in 13 states generated slightly more than 240,000 claims—double the number of claims from three events in the same quarter last year—from one of the mildest winters on record. Snowfall across the U.S. was below normal, especially in the eastern part of the country.

The costliest catastrophe in the quarter was the January winter storm that caused $265 million in insured-property damage in seven states, from Oklahoma to Ohio. PCS is reviewing the estimate because insurers are still receiving more claims from policyholders.

In March, two catastrophe events, primarily in the midsection of the country, caused $315 million in insured damages.

Texas, with $105 million, had the greatest insured loss followed by Kansas ($90 million), Missouri ($70 million), New York ($60 million) and Ohio ($50 million).