RMS: US Insured Nate Losses Below $500M
Based on analysis from RMS, a leading risk management and analytics firm, U.S. insured losses associated with wind and coastal flooding from Hurricane Nate will not exceed USD $500 million.
This season, insured losses from U.S. hurricanes are expected to total between USD $75 and $120 billion. The damage resulting from Nate is not expected to constitute a material portion these insured losses, RMS said.
“RMS’ industry loss estimate is expected to be lower than the losses projected prior to Nate’s landfall,” said Tom Sabbatelli, senior product manager of the RMS North Atlantic Hurricane Models.
“Forecasts that projected the storm to strengthen to Category 2 intensity did not materialize and Nate ultimately made two landfalls as a Category 1 hurricane. None of the wind measurement stations analyzed by RMS recorded hurricane-force wind speeds at any point duringthe storm’s passage.”
RMS added, “This estimate includes property damage and business interruption from wind and coastal flooding to residential, commercial,industrial, and automobile lines of business. The coastal flood losses include coverage leakage, an escalation in claimsseverity for wind-only policies in situations where wind and water hazards co-exist in residential lines of business.
“The losses associated with inland flooding are expected to be a minimal contribution to the total insurance industry loss and therefore is not included in this figure. Losses to the National Flood Insurance Program are not included.”
