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NEWARK, Calif. - October 13, 2017  Based on analysis from RMS, a leading catastrophe risk management and analytics firm, U.S. insured losses associated with wind and coastal flooding from Hurricane Nate will not exceed USD $500 million.

This season, insured losses from U.S. hurricanes are expected to total between USD $75 and $120 billion. The damage resulting from Nate is not expected to constitute a material portion these insured losses.

“RMS’ industry loss estimate is expected to be lower than the losses projected prior to Nate’s landfall. Forecasts that projected the storm to strengthen to Category 2 intensity did not materialize and Nate ultimately made two landfalls as a Category 1 hurricane. None of the wind measurement stations analyzed by RMS recorded hurricane-force wind speeds at any point during the storm’s passage,” said Tom Sabbatelli, senior product manager of the RMS North Atlantic Hurricane Models.

This estimate includes property damage and business interruption from wind and coastal flooding to residential, commercial, industrial, and automobile lines of business. The coastal flood losses include coverage leakage, an escalation in claims severity for wind-only policies in situations where wind and water hazards co-exist in residential lines of business. 

The losses associated with inland flooding are expected to be a minimal contribution to the total insurance industry loss and therefore is not included in this figure. Losses to the National Flood Insurance Program are not included.

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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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