This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Lockton Report Reveals What Catastrophe Models Didn't Show About Superstorm Sandy

KANSAS CITY, Mo., Feb. 6, 2013 /PRNewswire/ -- Two days after Superstorm Sandy made landfall on Oct. 29, 2012, catastrophe modeling firms EQECAT and AIR estimated that insured losses would reach $10 to $15 billion. Two weeks later, RMS and Swiss Re both estimated Sandy's insured losses of $20 to $25 billion. A new paper from Lockton explores whether an event like Sandy was considered in catastrophe models before it happened, and why those models often fail to consider all possible sources of loss.

(Logo: http://photos.prnewswire.com/prnh/20090415/CG99351LOGO)

The article – " Catastrophe Models: Learning from Superstorm Sandy " -- explains what can be done to supplement modeled outputs that don't consider the indirect losses caused by power outages and other systemic problems that interrupt business activities.

Sandy devastated the electrical and transportation network throughout the Northeast U.S., generating substantial business interruption claims. Although catastrophe models quantify "direct" business interruption, incorporating business interruption losses into model estimates can be difficult. 

"Insurance policies can be so nuanced as to what covers a loss or when you can claim on those business interruptions," explained Jeff Tennis, manager of Catastrophic Analytics and author of the Lockton paper. The reality is, with events like Sandy, the indirect losses are significantly greater than the direct losses.

"Insurance professionals must recognize the deficiencies in catastrophe models and supplement where needed," Tennis said. When key drivers of loss are ignored, companies may go unprotected. Models provide valuable information, but they don't always provide a comprehensive view of catastrophe risk. That task falls to an experienced insurance professional.

The full article is available free at www.lockton.com or at http://www.lockton.com/Insights-And-Publications/White-Papers/Catastrophe-Models-Learning-from-Superstorm-Sandy

More than 4,450 professionals at Lockton provide 15,000 clients around the world with risk management, insurance, and employee benefits consulting services that improve their businesses. From its founding in 1966 in Kansas City, Missouri, Lockton has attracted entrepreneurial professionals who have driven its growth to become the largest privately held insurance broker in the world and 9th largest overall. Independent researcher Greenwich Associates awarded Lockton its Service Excellence Award for risk management for large companies. For four consecutive years, Business Insurance has recognized Lockton as a "Best Place to Work in Insurance." To see the latest insights from Lockton's experts, check Lockton Market Update.

SOURCE Lockton

Copyright 2011 PR Newswire. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,915.84 -69.77 -0.41%
S&P 500 1,965.92 -6.91 -0.35%
NASDAQ 4,400.1280 -18.9060 -0.43%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs