Editor's note: As PCS estimates insured losses at $11 billion, catastrophe modeler AIR Worldwide has revised its insured-loss estimate upward to between $16 billion and $22 billion. AIR's previous estimate was between $7 billion and $15 billion.

LONDON (Reuters) – U.S data aggregator Property Claims Service (PCS) is putting insured losses from superstorm Sandy at $11 billion, which currently leaves catastrophe bond investors safe from losses – but experts say the figure is likely to rise.

PCS has not formally released its loss review yet, but an initial estimate based on its first survey has been seen by cat bond funds and traders.

PCS is an industry loss compilation service used by the majority of cat bonds to define whether an insurance event qualifies for a payout under the terms of the deal.

Catastrophe bonds allow insurers to pass on extreme risks, such as those related to earthquakes or hurricanes, to financial market investors, and are seen as an alternative to reinsurance.

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