The woman who created the catastrophe modeling industryestimates insured wind losses due to Superstorm Sandy will be $12billion.

Karen Clark, who in 2007 founded Karen Clark & Co. afterstarting what is now AIR Worldwide in the mid-1980s, says New Yorkwas hit by the strongest sustained winds from Sandy. Wind gustspeaked at between 70 mph and 80 mph in places like JFK Airport andLong Island, N.Y.

According to Karen Clark & Co.'s RiskInsight product—whichallows insurers and reinsurers to estimate company-specificlosses—there were no recorded sustained hurricane-force winds inNew Jersey but because winds are not measured in all areas, it'spossible that the New Jersey coast did experience winds of thisstrength. A large majority of claims can be expected from New Yorkand New Jersey.

Residential insurers can expect more than 650,000 claims forwind damage, according to RiskInsight. Commercial insurers canexpect in excess of 100,000 claims. Auto claims are not included inthe analysis of insured wind losses.

Catastrophe modelers Eqecat and AIR Worldwide have releasedinsured loss estimates. Each have taken in account other lossesfrom auto and business interruption claims, for instance.

Eqecat says insured losses will total $10 billion to $20billion, which could make Sandy the third-costliest U.S. storm everfor insurers—behind only 2005's Katrina ($46.6 billion) and 1992'sAndrew ($22.9 billion). AIR says Sandy will cause between $7billion and $15 billion in insured losses.

Modeler Risk Management Solutions says too many unknowns remainto provide a reliable estimate.

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