Loss Estimates

Initial estimates of insured losses from Hurricane Dolly underscore the point that in the early hours after any catastrophic event it’s difficult to quantify the precise loss with accuracy. Yesterday catastrophe modeling firm AIR Worldwide put the insured losses from Dolly in a wide  range  from $300 million to $1.2 billion with an expected (mean) loss of $600 million. Meanwhile Eqecat had an early preliminary loss estimate of less than $800 million. The considerable uncertainty in the loss estimates, according to AIR Worldwide, is due to Dolly’s slow forward motion, its significant precipitation, the uncertainty in its future track as it makes its way inland and the rate at which Dolly will dissipate over land. As insurers begin to get to the affected areas and to assess Dolly’s damage, it’s important to note that each storm is different. Even a storm with a similar track to a previous one can produce a wide variation in loss. As AIR Worldwide acknowledges, in this part of the coast a 10 mile difference north or south has a considerable impact on losses. Check out further I.I.I. info on the Texas insurance market and catastrophes.  

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