Catastrophe modelers dropped billions off their loss estimates of insured losses from Hurricane Ike, based on additional analysis of the storm's impact, but a consulting firm said the numbers could be much higher.

The Newark, Calif.-based RMS said yesterday that its new insured loss estimate stands between $7 billion and $12 billion–a change from its earlier $6 billion to $16 billion estimate. Oakland, Calif.-based EQECAT knocked $6 billion off its high-end estimate of $18 billion. The loss range fell from $8 billion to $18 billion to between $8 billion and $12 billion.

RMS said the estimate includes both onshore and offshore losses resulting from strong winds and storm surge. It does not include losses covered under flood policies issued by the National Flood Insurance Program (NFIP). The estimate also does not include loss of oil and gas production due to pipeline supply interruptions.

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