CAT losses reach US$56.8 billion

Insured property losses resulting from catastrophes in 2005 will deliver U.S. P&C insurers with a ‘bill’ of around US$56.8 billion, according to the property claim services unit at Insurance Services Office Inc. (PCS).This amount represents two times the recorded figure of insured property losses resulting from catastrophes in 2004 US$27.3 billion. A total of 24 catastrophic events were recorded by PCS throughout 2005, however of these 24 it was a mere five hurricanes that caused 93% or US$52.7 billionof total damages. About US$34.4 billion of the storm losses resulted from Hurricane Katrina, according to PCS.Policyholders in 39 states filed more than four million personal, commercial property and automobile catastrophe-related claims but 80% of these claims stemmed from policies in five states with Louisiana suffering US$27.2 billion in property damages, Mississippi suffering US$12.2 billion, Florida suffering US$9.9 billion, Texas suffering US$2.9 billion, and Alabama suffering US$1.5 billion.”Catastrophic activity in the fourth quarter was also unusual, with Tropical Storm Zeta developing in late December, well beyond the official end of hurricane season, Nov. 30,” the ISO recently states in a public release. “Five, fourth-quarter events triggered $8.9 billion in insured lossesthe costliest fourth quarter on record in the past 10 years. (Hurricane) Wilma’s $8.4 billion loss produced the lion’s share of the quarter’s steep tally.”