CAT LOSS 2008 RECAP (2)
2008 cat losses estimated at $25.2 billion
JERSEY CITY, N.J.—Catastrophes cost U.S. property/casualty insurers about $25.2 billion in insured property losses last year, the Insurance Services Office Inc.'s Property Claim Services unit reported Tuesday.
Jersey City, N.J.-based PCS said insurers paid 3.9 million claims for damage in 40 states from 2008's 37 catastrophes. Hurricanes caused the greatest losses at $13.3 billion, with two additional tropical storms generating an additional $300 million in insured losses. Severe weather events—those producing tornadoes, hail and flooding—cost an additional $10.5 billion. In addition, winter storms caused more than $1 billion in insured property damage in 2008.
PCS said the majority of the claims involved personal lines, which accounted for 64% of the $25.2 billion, with commercial lines accounting for 27% and vehicle losses the remaining 9%.
Texas sustained the greatest losses at $10.2 billion, followed by Louisiana at $2.2 billion, Minnesota at $1.6 billion, Ohio at $1.3 billion and Georgia at $1.0 billion.
Last year's catastrophe loss total was the fourth highest in a decade and the highest since 2005, when Hurricane Katrina and other hurricanes helped drive total insured catastrophe-related property losses to $62.3 billion, according to PCS.
PCS defines a catastrophe as an event that causes at least $25 million in insured property losses and that affects a significant number of policyholders and insurers.
