Risk Management Solutions (RMS) released a revised loss estimate of $600 million for wind-related claims from Hurricane Isabel, updating its initial estimate of $500 million released on Sept. 17. The company also reported that flood-related losses could bring total insurance payments up to $1 billion for the event.
For the revised wind estimate, RMS reconstructed Isabel's windfield using reported windspeed data, and validated the estimate through on-site observations by an RMS reconnaissance team. The team plotted actual damage at various points in the impact area and compared these observations to modeled estimates from RMS' windfield reconstruction. The $600 million estimate includes insured losses for property damage as well as business interruption.
"This storm had a very broad windfield with a large area of low level damage," Michael Drayton, head of climate hazards at RMS, said.
