Cat losses below average in Q1: PCS

Insured losses stemming from catastrophes in the first quarter of 2015 reached $2.2 billion, just below the ten-year average of $2.5 billion.

This is according to a report by Property Claim Services (PCS), a division of Verisk Analytics, which added that total insured losses were roughly even with the first quarter of 2014, although the number of events designated grew from six to eight. This was slightly above the 6.7 events per first quarter average.

In the first quarter of 2015, one event represented more than half of all insured losses, and only two events entered the PCS resurvey process.

First quarter catastrophe activity affected 24 states, an increase from the 19 affected last year.

Massachusetts was the hardest hit state, with record levels of snow causing insured losses from PCS-designated events of nearly $600 million. This was followed by New York at $370 million. Last year, Georgia had the largest first-quarter total from PCS-designated events: $318 million.

“The first quarters of 2006 and 2007 were quite calm — $1.5 billion and $1.3 billion, respectively. However, 2008, 2009, and 2012 all topped $3 billion in insured losses from PCS-designated catastrophe events, with 2013 coming close at $2.8 billion,” said the report.

“And 2015 matches the result from the first quarter of 2011 and last year as well. This shows the unpredictability of first-quarter activity, in which winter storm, hail, and wind events can cause significant losses.”