Moody's RMS estimates Isaias will cost insurers $3.5 billion

By Scott Vincent Oct 16 (The Insurer) — Moody’s RMS Event Response has estimated insured losses from Hurricane Isaias will total between $2.5 billion and $4.5 billion, with a best estimate of $3.5 billion, the company said on Friday. Moody’s estimate is at the top end of the range of modelled loss estimates published to date. The estimate includes damage from wind, storm surge and precipitation-induced flooding. Moody’s said wind damage accounts for most of the losses. Around $250 million of the total is attributable to storm surge, precipitation-induced inland flooding and National Flood Insurance Program losses. The estimate includes property damage for residential, commercial and industrial buildings, as well as business interruption, automobile losses and watercraft lines of business. Post-event loss amplification is also included in the estimate. Raj Vojjala, managing director, modeling and analytics at Moody’s, said many of the impacted exposures had been affected by recent storms, which had led to widespread roof repairs and replacements. “We expect these efforts to have improved the risk profile and structural resilience of the region’s building stock to hurricane winds, es