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NEW YORK, August 27, 2012 — As Isaac approaches, U.S. insurers are prepared to pay for the damage the storm may cause to the homes, businesses and vehicles of their customers, according to the ̽����ѡ Information Institute (I.I.I.).

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“The property/casualty (P/C) insurance industry is extremely strong financially despite a near record-breaking $33 billion in insured catastrophe claims in 2011 and $10 billion in the first half of 2012,” said Dr. Robert P. Hartwig, president of the I.I.I. and an economist. Dr. Hartwig added that the industry’s claims-paying capacity stands at record levels, despite the wild U.S. weather over the past several years.

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Tornado and thunderstorm events in 2011, such as those that struck Tuscaloosa, Alabama, and Joplin, Missouri, produced $26 billion in claims last year. So far in 2012 tornadoes and thunderstorms have resulted in claims exceeding $9 billion. While insured losses from tropical activity have so far been light in the U.S., Hurricane Irene last year produced $4.3 billion in claims when it struck the East Coast, ranking Irene as the 11th most expensive hurricane in U.S. history. Wildfires, exacerbated by severe drought conditions throughout much of the United States, have generated at least $500 million in claims to date in 2012.

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Isaac, which is expected to impact a number of Gulf Coast states tomorrow (Aug. 28), is the ninth named tropical storm of 2012. The National Oceanic and Atmospheric Administration (NOAA) says a normal Atlantic hurricane season produces 12 named storms, including six hurricanes, three of them major with sustained winds of at least 111 miles per hour. The Atlantic hurricane season began on June 1 and concludes officially on November 30.

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Despite the industry’s overall financial strength, Dr. Hartwig, pointed out that, for P/C insurers, “Significant risks abound, including the potential for high catastrophe losses during this year’s hurricane season, the prospect of high underwriting losses associated with non-catastrophe events, and more uncertainty in the investment markets.”

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̽����ѡ Information Institute, 110 William Street, New York, NY 10038; (212) 346-5500;