The Japan earthquake and tsunami revealed a flaw in catastrophe modelers' planning, as modelers pointed to the fact that they did not account for the complete devastation that hit the island nation.

In its report earlier this week that estimated between $15 billion and $35 billion in property losses from the quake, Boston-based AIR Worldwide said it does not include such events as took place in Japan last week in its models.

"…the AIR Earthquake Model for Japan does not account for the effects of tsunami," AIR said. "As more detailed information becomes available, AIR plans to independently estimate the loss due to tsunami and provide a combined loss estimate that avoids double-counting in the affected areas."

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