Insurers Total Claim Activity From Isabel
By Gary Mogel
NU Online News Service, Sept. 24, 11:01 a.m. EDT
"Isabel will fall generally within the range of catastrophic risk that insurers anticipated and built into insurance premiums," said Bob Hartwig, chief economist at Insurance Information Institute in New York.
Catastrophe modeling firm Risk Management Solutions Inc., based in Newark, Calif., estimates $600 million in wind claims and a total for all insured Isabel-related losses--including flood--of $1 billion. "This storm had a very broad wind field with a large area of low-level damage," said Michael Drayton, head of climate hazards at RMS.
Insurers have started reporting the number and type of claims caused by the storm:
? State Farm Mutual Auto Insurance Co., based in Bloomington, Ill., and the largest personal lines insurer in the U.S, has had about 28,000 personal automobile and homeowners claims from Isabel, noted spokesperson Mary Beth Cramer.
? Allstate Corp. in Northbrook, Ill., has reported 15,457 property claims and 1,394 auto claims in Virginia; 4,215 property claims and 430 auto claims in Maryland; and 2,306 property claims and 341 auto claims in North Carolina, said spokesperson Bill Mellander.
? Liberty Mutual Insurance Company spokesperson Glenn Greenberg reported about 5,100 claims so far, all but 30 of which are personal lines--predominantly homeowners claims. He also noted that Liberty estimates $10 million to $11 million in total insured losses from the hurricane.
? Holly Diefenbaugh, a spokesperson for Columbus, Ohio-based Nationwide Mutual Insurance Co., said that there have been approximately 25,000 claims filed with the insurer so far related to Isabel, the vast majority of which are in North Carolina, Virginia, Maryland and the District of Columbia.
? The Hartford has received about 2,000 Isabel-related claims so far, said Cynthia Michener, a spokesperson for the Hartford, Conn.-based insurer. But only around 50 of those claims are considered heavy damage, she added.
? Chubb Group, based in Warren, N.J., does not yet have a complete picture of the extent of loss caused by Isabel, according to spokesperson Mark Schussel. But he indicated that Chubb does write homeowners coverage in the affected states, specializing in high-valued and historic homes.
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