Cats at 10-year low for Q1, says ISO

The U.S. Insurance Services Office (ISO) is reporting that for the first quarter of 2002 insured-property losses are the lowest for any first quarter in the past decade. U.S. Insurers will pay out US$580 million in homeowners’ and commercial property claims as a result of three catastrophes, according to preliminary figures.A January winter storm that covered seven states is the costliest at US$265 million. Two March events made up the rest of the total. However, the number of claims was more than double that of the first quarter 2001, up to 240,000.While last year was the worst year on record for catastrophe losses, due to the September 11 terrorist attacks, the first quarter 2001 was below average at US$705 million. The highest first quarter for cat losses in the past decade was 1994, with US$14.48 billion, owing largely to the Northridge, California earthquake.Lower-than-average snowfall levels are partly the cause of the light losses in the first quarter 2002, the ISO notes, especially in eastern states. Texas, ironically, suffered the largest losses for the quarter at US$105 million, followed by Kansas at US$90 million, and Missouri at US$70 million. New York and Ohio round out the top five states in terms of cat losses.Cats are defined by the ISO as events in a particular territory causing US$25 million or more in insured property losses.