ISO Gives Ice Storms Cat Rating

BY DANIEL HAYS, National Underwriter Online News Service, Dec. 13, 4:03 p.m. EST

Insurance Services Office in Jersey City said the ice storm that slammed into the Midwest on Monday has been rated an insurance catastrophe.

Gary Kerney, ISO assistant vice president, Property Claim Services, said“PCS declared a catastrophe for damage from ice and freezing. The definition pertains to the insured property damage in the Midwest including Oklahoma, Kansas, Missouri, Nebraska, Iowa and Illinois.”
ISO rates as catastrophes events which inflict an insured loss of $25 million.

Oklahoma Gov. Brad Henry yesterday declared a statewide state of emergency, and more than one million persons in the affected states were said to have been without power after the storm hit.

Insurers in reaction were gearing up to deal with an expected avalanche of claims.
Safeco said its claims team members have mobilized in the affected areas and are surveying damages in order to expedite the claims process.

Robert Johnston, Safeco's National Catastrophe Team Leader, said: "There’s a wide range of damage spread across several communities. Our goal is to provide immediate support and assistance to our customers when and where they need it.”

Mr. Kerney at PCS noted that “power outages are still widespread through the region, and we expect claims reporting to pick up in the days ahead.”

After the storms hit a half-inch to an inch of ice covered much of central and northeast Kansas, with one-quarter to one-half inch across much of the southern half of the state and one-tenth of an inch to a half-inch across northwest Kansas, according to the National Weather Service.