RMS Ups Wilma Loss Estimates

Risk Management Solutions (RMS), Newark, Calif., has increased its estimate for U.S. insured losses from Hurricane Wilma to $8 billion to $12 billion. Its original estimate was $6 billion to $10 billion. The estimate includes onshore damage resulting from wind and coastal storm surge, business interruption, and increased costs for materials and services needed for repairs (demand surge).

The increase in estimated insured losses resulting from Hurricane Wilma is the result of further analysis of the wind speeds in the Miami metropolitan area and along the eastern coastline, which Wilma crossed as a large, category 2 hurricane. RMS reconnaissance teams have reported extensive areas of roof damage indicative of wind speeds in excess of 90 to 100 miles per hour across the area. High-rise commercial buildings in Miami also sustained significant damage to windows and cladding, contributing to the insured losses. Widespread power outages continue throughout the metropolitan area, as well as in parts of Naples and surrounding communities, which will likely propagate business interruption claims.

RMS will continue to monitor Wilma’s impact throughout the week.