Risk Management Solutions has revised its estimate for U.S. onshore and offshore insured losses from Hurricane Ike to between $7 billion and $12 billion.

The Newark, Calif.-based catastrophe risk management firm previously estimated the losses at between $6 billion and $16 billion.

The revised estimate is based on analysis of damage reports, verified wind speed and tidal gauge observations, and on-site assessment.

“Our reconnaissance teams have focused on evaluating wind and storm surge damage in the landfall region, and they have found that despite some severely affected coastal areas, Ike wasn’t as damaging as initially feared,” says Christine Ziehmann, director of model management at RMS. “While the 75-story JPMorgan Chase tower was extensively damaged, the majority of downtown Houston had minimal damage. They also found that most of the large industrial facilities, including the oil refineries, escaped significant flooding or other damage, though they are dependent on power being restored to regain operations.”

The estimate does not include losses covered under flood policies issued by the National Flood Insurance Program, or loss of oil and gas production due to pipeline supply interruptions.

Losses to offshore oil and gas platforms will contribute a relatively small proportion of the total insured losses for Ike, since winds and waves offshore were generally within the design levels for the platforms, the company said.

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Houston Business Journal

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