ISO Now Puts Tornado Claims At $1.55 Billion
NU Online News Service, May 21, 8:50 a.m. EDT?Insurance Services Office Inc. said today it estimates insured property-loss claims from thunderstorms and tornadoes that touched down across the country earlier this month would reach $1.55 billion.
According to a preliminary estimate by Jersey City, N.J.-based ISO's Property Claim Services unit, insurers will receive more than 429,000 claims from auto, residential and commercial policyholders affected by hail, wind, flooding and more than 400 tornadoes.
This estimate, the group said, is based on a survey of some 70 percent of insurers writing residential, commercial and automobile policies in the affected states.
In a historical context, the estimated insured losses from the May windstorm event would rank it as the third-highest ever. The costliest insured loss in a windstorm catastrophe would still belong to the windstorm event from April 2001, which affected 16 states and cost $2.2 billion in insured losses.
An April 2002 event cost $1.7 billion in losses that reached 17 states.
Gary Kerney, PCS assistant vice president, noted that this is still a preliminary estimate. "We will review our initial loss estimate in the next 60 days, which could change the dollar figures and the claim count," he said.
According to the ISO estimate, Tennessee sustained the highest insured losses, with $310 million from an estimated 77,000 claims. It is followed by Missouri, with estimated losses of $275 million from 62,000 claims. Next is Oklahoma, with $245 million in estimated losses and some 55,500 claims.
Following those states in order of damage are, Nebraska, Georgia, Illinois, and North Carolina.
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