Advisen Ltd. on Tuesday estimated worldwide insurance and reinsurance losses related to the three major hurricanes that hit the United States this year would amount to $57.6 billion, making the cumulative catastrophe losses the largest on record.
By predicting unreported losses from State Farm Mutual Automobile Insurance Co., the largest personal lines insurer, as well as unreported and unfiled losses elsewhere, Advisen projects pre-tax insured losses per hurricane to be $40.4 billion for Katrina, $6.4 billion for Rita, and $10.8 billion for Wilma.
The losses amount to more than twice the annual total for other U.S. natural disasters and one-and-a-half times the losses from the 2001 terrorist attacks in New York and Washington.
Several variables could prompt Advisen's estimates to increase dramatically, the company warned. Flood losses could elevate Advisen's estimates by billions of dollars if lawsuits to force insurers to cover flood damage related to Hurricane Katrina are successful.
Also, hurricane-related pollution lawsuits could add hundreds to Advisen's totals, it said.
