JERSEY CITY, NJ, Oct. 17, 2002 — Insurers are expected to pay $335 million to homeowners and businesses for insured-property losses from Hurricane Lili that struck Louisiana and Mississippi on October 3, according to estimates by the Insurance Services Office, Inc.'s (ISO) Property Claim Services (PCS) unit.
Lili, initially billed as a Category 4 hurricane, was downgraded to a Category 2 storm with wind speeds near 100 miles an hour, when it made landfall near New Iberia in southern Louisiana. Heavy rain exacerbated flood conditions that persisted following Tropical Storm Isidore, which had struck Louisiana the previous week. Gale force winds, downed trees and flying debris caused much of the property damage as did rain streaming inside many homes and businesses.
Homeowners and businesses in Louisiana and Mississippi are expected to file more than 116,000 claims. Louisiana accounted for $320 million in damages from 112,700 claims to personal and commercial property, and automobiles. Personal property claims constituted the vast majority — more than 80 percent, or nearly 95,000 claims — of the 116,000 claims anticipated by insurers.
ISO's PCS unit defines a catastrophe as an event within a particular territory that causes $25 million or more in insured property losses and affects a significant number of property and casualty policyholders and insurers.
PCS estimates represent anticipated insured loss on an industrywide basis arising from catastrophes, reflecting the total net insurance payment for personal and commercial property lines of insurance covering fixed property, personal property, vehicles, boats, related property items and business-interruption losses. The estimates exclude loss-adjustment expenses.
ISO is a leading source of information, products and services related to property and liability risk. For a broad spectrum of commercial and personal lines of insurance, ISO provides statistical, actuarial, underwriting and claims information and analyses; consulting and technical services; policy language; information about specific locations; fraud-identification tools; and data processing. In the United States and around the world, ISO serves insurers, reinsurers, agents, brokers, self-insureds, risk managers, insurance regulators and other government agencies.