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RMS: Nate insured losses will not exceed US$500m
Written by staff reporter
Insured losses associated with wind and coastal flooding from Hurricane Nate will not exceed US$500m, according to estimates from RMS. This season, insured losses from US hurricanes are expected to total between US$75 and US$120bn. The damage resulting from Nate is not expected to constitute a material portion these insured losses.
“RMS’ industry loss estimate is expected to be lower than the losses projected prior to Nate’s landfall. Forecasts that projected the storm to strengthen to Category 2 intensity did not materialize and Nate ultimately made two landfalls as a Category 1 hurricane. None of the wind measurement stations analysed by RMS recorded hurricane-force wind speeds at any point during the storm’s passage,” said Tom Sabbatelli, senior product manager of the RMS North Atlantic Hurricane Models.
This estimate includes property damage and business interruption from wind and coastal flooding to residential, commercial, industrial, and automobile lines of business. The coastal flood losses include coverage leakage, an escalation in claims severity for wind-only policies in situations where wind and water hazards co-exist in residential lines of business.
The losses associated with inland flooding are expected to be a minimal contribution to the total insurance industry loss and therefore is not included in this figure. Losses to the National Flood Insurance Programme are not included.