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NEWARK, Calif. - September 19, 2016 RMS, the largest global catastrophe risk management firm, estimates that the insured loss associated with wind and coastal flooding from Hurricane Hermine will not exceed $400 million.

This figure includes property damage and business interruption caused by wind and coastal flooding to residential, commercial, industrial properties, and auto lines of business. RMS estimates that residential insured losses represent approximately 60-70 percent of the total insured loss. Post-event loss amplification is not expected to be a factor from Hurricane Hermine.

The RMS calculations are based on its hazard reconstructions of Hermine’s windfield and storm surge using version 16.0 of the RMS North Atlantic Hurricane Models. The reconstructions show that on average approximately 30 percent of the event loss is associated with coastal flooding, including coverage leakage, in addition to an escalation in claims severity for wind-only policies in situations where wind and water hazards co-exist in residential lines of business.

Tom Sabbatelli, hurricane modeler at RMS said:  “Hermine produced damage within the expectations of a category 1 hurricane and RMS analysis shows that this event won’t severely impact the insurance industry. Although Hermine was the first hurricane to make landfall in Florida in eleven years, it did not end Florida’s drought of major hurricane (category 3-5) landfalls.”

This estimate does not include losses to the National Flood Insurance Program. 

Furthermore, losses associated with inland flooding are not included, but are expected to be a minimal contribution to the total insurance industry loss.

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About RMS

Risk Management Solutions, Inc. (RMS) helps insurers, financial markets, corporations, and public agencies evaluate and manage global risk from natural and man-made catastrophes, including hurricanes, earthquakes, floods, climate change, cyber, and pandemics.

RMS leads the catastrophe risk industry that we helped to pioneer by marrying data and advanced model science with leading-edge technology. Leaders across multiple industries can address the risks of tomorrow through RMS Risk Intelligence™, our open, real-time exposure and risk management platform, enabling them to tap into RMS HD models, rich data layers, intuitive applications and APIs that simply integrate into existing enterprise systems.

RMS is a trusted solutions partner enabling effective risk management for better business decision making across underwriting, risk selection, mitigation, and portfolio management.

Visit RMS.com to learn more and follow us on LinkedIn and Twitter.

Media Contacts

Matthew Longbottom

PR Lead, EU and APAC
+44 20 7444 7706 prteam@rms.com

Devonne Cusi

PR Lead, Americas
+1 551 226 1604 prteam@rms.com
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