Property⁄Casualty Insurers Expected to Pay Wilma Victims $6.1 Billion

London, UK, Nov. 29 — U.S. property/casualty insurers are expected to pay an estimated $6.1 billion to Florida policyholders for insured property losses from Hurricane Wilma, pushing year-to-date catastrophe losses to $50.3 billion — an all-time record, according to preliminary analysis by ISO’s Property Claim Services (PCS) unit.

The year’s three most devastating hurricanes — Katrina, Rita and Wilma — together account for $45.2 billion, or 90 per cent, of the total catastrophe loss from 22 events.

Wilma made landfall near Cape Romano, Florida, on October 24 as a Category 3 hurricane with peak wind gusts exceeding 120 miles an hour. Homes and businesses in Dade, Broward and Palm Beach counties took a heavy pounding with widespread power outages and extensive damage to property from windborne debris and fallen trees.

Insurers expect 750,000 claims from policyholders for damage to personal and commercial property, automobiles, and boats and yachts. PCS estimates claims from owners of boats and other recreational vessels will be around $125 million.

The hurricane season this year — the most active ever with 13 named hurricanes — officially ends Nov. 30. But 2005 catastrophe losses are likely to climb with additional claims expected for Katrina, Rita and Wilma. Additional winter storms through the end of the year could drive this year’s catastrophe losses even higher, according to PCS.

PCS will resurvey insurers in 60 days as more claims are filed and existing claims are closed. PCS resurveys are standard procedure for all catastrophes that exceed $250 million in insured losses or whenever specific circumstances require additional analysis.

ISO’s PCS unit defines a catastrophe as an event that causes $25 million or more in insured property losses and affects a significant number of policyholders and insurers.

PCS estimates represent anticipated insured loss on an industrywide basis arising from catastrophes, reflecting the total insurance payment for personal and commercial property lines of insurance covering fixed property, personal property, vehicles, boats, related property items, business interruption and additional living expenses. The estimates exclude loss adjustment expenses.

About ISO
^{Insurance Services Office (ISO) Ltd is a leading provider of products and services that help measure, manage and reduce risk. ISO provides data, analytics and decision-support solutions to professionals in many fields, including insurance, finance, estate agency, health services, government and human resources. Professionals use ISO's databases and services to classify and evaluate a variety of risks and detect potential fraud. Around the world, ISO's services help customers protect people, property and financial assets. ISO's customers in the UK include Admiral Group, AXA Insurance, Chaucer Insurance, Highway Insurance, Lloyd's, Rubicon Corporation and Zurich Financial Services.}

For more information please contact:
Mark Strang,
ISO, UK
Tel: 01252 761055
mstrang@iso.com

Manuela Whittaker,
IBA – PR for ISO
Tel: 01780 721433
mwhittaker@iba-europe.com

Dave Dasgupta,
ISO, US
Tel: +1 (201) 469-2426
ddasgupta@iso.com

EDITOR’S NOTE: Be sure to visit our interactive website at www.iso.com.

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