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Nov 27, 2012 7:57 PM by Bill Folsom

Catastrophe trend in Colorado spikes insurance claims


A study released by the Insurance Research Council shows Colorado is now among states with the largest insurance claims due to natural disaster catastrophes. The information compiled by the Insurance Research Council now shows Colorado in the top 10. The study shows trends in insurance claims over multiple years.

The trend study does not include 2012, so the Waldo Canyon Fire and other wildfire claims that add up to half a billion dollars are not included. Wildfires are a significant part of the results, but it is actually wind and hail events from 2007 to 2011 showing the largest impact on catastrophe claims. "These events are so widespread you have thousands of cars, thousands of roofs. So that adds up to very large insurance losses. Just from a 45 minute storm", said Rocky Mountain Insurance Information Association, Executive Director, Carole Walker.

There are years when insurance companies have paid out more in claims then they have received in premiums. "[It] is having significant impact on what we pay for homeowners insurance," said Walker. She also points out there are around 2-hundred insurance writers in Colorado who do not want long time customers shopping around for another provider. "They...understand it's a competitive market."

 

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