Catastrophe risk modeler Risk Modeler Solutions (RMS) has weighed in on how much Hurricane Irene will cost the P&C insurance industry. The Newark, Calif.-based modeler says the insured losses from Hurricane Irene in the United States and Caribbean will fall between $2.5 billion and $5.5 billion.
Specifically for the U.S., RMS says insured losses will be between $2 billion and $4.5 billion. Modeler Eqecat believes that U.S. insured losses from Irene will range between $1.5 billion and $2.8 billion. AIR Worldwide pegged U.S. insured losses at $3 billion to $6 billion.
Add insured losses from the storm's damage in the Caribbean and the range climbs to between $1.8 billion and $3.4 billion, according to Eqecat. AIR added an insured loss estimate for the Caribbean of between $500 million and $1.1 billion.
“Our estimate range reflects some uncertainty, including the definition of hurricane versus non-hurricane deductibles for individual states, and the uncertainty surrounding losses from damage caused by tropical storm winds,” said Michael Kistler, director of model solutions at RMS, in a statement. “During Irene, a large swath of tropical-force and low hurricane-force winds swept across a large area of exposure causing widespread, low-levels of damage.”
RMS says it has seen a small number of roof-detachment reports but generally the damage was less severe. Plus, power outages cause by Irene played a factor in estimating insured loss—which varies between modelers.
Photo: Jocelyn Augustino/FEMA
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