June 19, 2002 by Canadian Underwriter
The New York-based Insurance Services Office Inc. (ISO) has readjusted its insured property loss estimate from the World Trade Center (WTC) and Pentagon terrorist attacks of last year by US$3.7 billion to a total of US$20.3 billion.
This latest loss figure, which takes into account commercial and personal property claims as well as related covers such as business interruption, confirms that the terrorist attacks remain the most costly man-made insured disaster. The insured loss resulting from Hurricane Andrew in 1992 clocks in slightly less at US$19.6 billion on an inflation-adjusted basis, the ISO observes. The ISO’s latest claim survey suggests that the total property loss arising from the New York terrorist attacks will be about US$20.3 billion, comprising of 30,000 personal claims, 15,000 commercial and 4,000 on the auto side. The Pentagon attack will likely cost insurers around US$6.5 million from 1,500 personal claims, 200 commercial and 300 auto-related. "Much uncertainty still surrounds property claims activity, and so the PCS [Property Claims Services division of the ISO] estimate is subject to change in the coming months," says the ISO.