2006 catastrophes cost U.S. insurers US$8.8 billion

U.S. catastrophes and insured losses cost the U.S. property and casualty industry an estimated US$8.8 billion in 2006, according to ISO’s property claims services unit.That’s a far cry from the estimated damage losses of US$61.9 billion the unit recorded after the busy hurricane season in 2005. Still, the frequency of catastrophes is rising, ISO added.In total, ISO identified 33 catastrophic events occurring in the United States in 2006. ISO defines a “catastrophe” as an event “that causes US$25 million or more in insured property losses and affects a significant number of policyholders and insurers.”Personal lines claims accounted for 58% of the 2006 loss total, commercial lines claims were at 9% and vehicle claims were at 33%.The 33 events caused insured property damage in 34 of the 50 states and the District of Columbia. Indiana recorded the highest losses, at US$1.5 billion, followed by Missouri, Tennessee, Texas and Kansas.But while losses from catastrophe events declined sharply in 2006, they were nonetheless at their sixth highest level since 1997. “The frequency of catastrophe events rose last year to its second-highest level in a decade,” ISO noted. The average annual number of catastrophes between 1997 and 2006 is about 26.