Combined Ratio Up To 120

An estimated $30 billion-plus loss from terrorist attacks will give the p-c insurance industry "a record-poor" year-end combined ratio of 119.9, according to the Insurance Services Office Inc. The Jersey City-based ISO said that the projected 2001 combined ratio--the percentage of each premium dollar spent on claims and expenses--will be nearly 10 points worse than last year’s 110.1 figure. The losses from Sept. 11 alone have deteriorated the combined ratio by 6.3 points for the calendar year, according to an ISO representative, Christopher Guidette. Commercial lines writers, according to ISO extrapolations, could see a combined ratio exceeding 130 for the year. ISO noted that even before Sept. 11, the p-c industry's total first-half 2001 combined ratio was 111.2.