Estimates on Insurance Cost of Sandy Rising
According to a new estimate by disaster-modeling firm Risk Management Solutions, Superstorm Sandy may cost the insurance industry up to $25 billion. The figure is higher than earlier estimates from AIR Worldwide and Eqecat, and would mark Sandy as second only to 2005’s Hurricane Katrina for insured losses. The Wall Street Journal reports that a spokeswoman for RMS confirmed the number, and added that the company hadn’t released the figure publicly because it is in the process of “working with our clients to help them to determine the impact of Sandy.” Eqecat previously predicted that the insurance industry will likely pay out between $10 billion and $20 billion. But insurance industry executives have said the sector should have no trouble digesting the cost of the devastating storm.