Previous estimates by New York-based Insurance Information Institute and Newark, Calif.-based Risk Management Solutions, Inc. were $1 billion in insured losses.

ISO spokesperson Dave Dasgupta explained that the PCS estimate is based on a survey of actual claims that have been received by insurers, and then making a projection of the total losses that will have to be paid.

"The estimates from other organizations are based on computer-generated catastrophe models," Mr. Dasgupta said. "They did not talk to the insurance companies."

One insurer alone--Nationwide Mutual Insurance Co.?on Oct. 1 estimated that it will have 70,000 claims related to Hurricane Isabel, and that its insured losses could reach $235.5 million.

Nationwide's projected breakdown of the losses by line of coverage are $214 million for homeowners claims, $12.5 million in auto claims, $1.1 million in boat claims, and $7.9 million in commercial claims.

The Columbus, Ohio-based insurer said in a statement that wind and water damage were a leading cause of losses for many homeowners. As of Tuesday, policyholders had reported 56,092 claims.

"Our preliminary loss projections indicate that Virginia was hardest hit," noted Ken Enscoe, Nationwide's director of catastrophe claims operations. "We project more than 900 large loss homeowners claims--losses of $25,000 or more--and a total of 30,000 homeowners claims in that state."

According to ISO, the states that suffered the most losses are Virginia ($450 million), Maryland including Washington, D.C. ($410 million), and North Carolina ($170 million).