U.S. storm losses will exceed US$22 billion: III

The 2004 hurricane season will rank as the second-largest insured loss in U.S. history, according to the Insurance Information Institute (III).The III says losses from the 2004 hurricanes Charley, Frances, Ivan and Jeanne will hit US$22 billion at least. The largest loss ever was the September 11, 2001 terrorist attacks at US$32 billion.While 1992’s Hurricane Andrew still ranks as the largest single hurricane loss in U.S. history at US$20.3 billion (2003 dollars), Charley will rank as number-two at US$6.8 billion. Jeanne will rank as the fourth worst hurricane at US$5-$7 billion, followed by Frances at fifth, with losses of US$4.4 billion. And Ivan ranks as sixth, at US$4-$5 billion.The III does stress that the insurance industry has sufficient resources to pay this year’s hurricane losses, but added that the claims management process is going to be extremely difficult given the magnitude of claims, despite the presence of 15,000 adjusters on the scene in Florida, as well as many other in affected states such as Georgia and Alabama.The Louisiana Department of Insurance says that state’s insurers will pay out US$7.2 million in losses as a result of Hurricane Ivan, with the overwhelming majority of this on homeowners’ claims. In fact, almost half of this loss comes from losses experienced by Louisiana’s “market of loss resort”, the Citizens Property Insurance Corp.