Insured loss estimates are increasing and indications are that estimates will grow greater than the figures released late last week.
Newark, Calif.-based Risk Management Solutions (RMS) and Oakland, Calif.-based Eqecat, Inc., raised their loss estimates late Friday, with significant increases over their initial estimates as the extent of loss becomes more apparent.
RMS raised its range of loss estimate from $10- to $25-billion to $20- to $35-billion in insured losses. Eqecat raised its estimate range from $9- to $16-billion to $14- to $22-billion, based on more detailed information on the extent of flooding in Louisiana.
"Over the last few days it has become very clear that Hurricane Katrina's devastation, due to the unprecedented amount of flooding, will make it one of the worst natural disasters in U.S. History," said Richard Clinton, president of Eqecat.
RMS said its figures also include data gathered on offshore oil platforms that sustained damage when Katrina was at its worst with sustained winds exceeding 160 mph.
Josh Darr, a meteorologist analyst and manager with RMS, said the modelers' figures reflect losses from wind, hurricane and business interruption coverage, but losses from New Orleans flooding are still to be calculated. Adding those losses in could raise the estimates higher, but how much he would not say. He said RMS hopes to have new estimates by the end of the week.
On the claims front, Julie Pulliman, a spokeswoman for the American Insurance Association said adjusters are getting into the worst hit areas of Mississippi and making progress. They are still dealing with the challenges of fuel and communication. She said one AIA member was discussing bringing a tanker gas truck in so adjusters would have one central location for refueling.
"People are adjusting and doing what they can to make it work down there," she said. "They are making progress and getting in there."
In Alabama, she said there have been no major issues to report and adjusters are making progress. In Louisiana, however, they are still waiting for flood waters to recede, she noted.
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