2007 not so catastrophic for U.S. property insurers

U.S. property and casualty insurers are expected to pay $6.5 billion in losses from 23 catastrophes during 2007, much of it from California wildfires, according to ISO Inc., a company that supplies statistical information for the industry.

That figure, however, is dwarfed by those of earlier years when multiple major hurricanes slammed into the U.S. When Hurricane Katrina devastated New Orleans in 2005, property insurers paid more than $62 billion.

“Insurers look at the long-run picture,” said Robert Hartwig, president of the Insurance Information Institute. “Over the last four years, they’ve paid out more than $100 billion.”

ISO said the $6.5-billion figure was one of the lowest in recent years but warned that the trend might not last.

Forecasters at Colorado State University have predicted a “somewhat above-average” hurricane year for 2008, with 13 tropical storms during the Atlantic hurricane season, seven of which will strengthen into hurricanes. The season lasts from June 1 to Dec. 1.

For 2007, one of the most devastating events was the Witch fire in San Diego County, which caused an estimated $1.1 billion in losses, the ISO said.