Risk Management Solutions (RMS) have revised their estimate of losses from hurricane Ike upwards to between $13-21b (from an original estimate of $7-12b). This is not unexpected as reinsurers have been registering loss levels which are much higher than expected.
RMS say the final estimate will depend on the extent of storm surge losses and inland wind losses. The amount of inland wind losses are still a little murky as it will depend on policy wording as to whether losses incurred by wind inland were actually covered or not.
So the final outcome is still unknown but it’s now looking highly likely that their could be impacts to hurricane options, potentially industry loss warranties and maybe even catastrophe bonds.
Stay tuned and we will bring you updates as the picture of losses becomes clearer.