RMS Estimates up to $200 Million Insured Damage so far from Hurricane Ike

Concern About U.S. Landfall Increases as Storm Grows Larger

Newark, CA – September 11, 2008 – Damage wreaked by Hurricane Ike in the popular Turks & Caicos Islands and Bahamas is estimated to range between $50 million and $200 million, according to analysis by Risk Management Solutions (RMS), the world’s leading catastrophe risk experts. This loss is due to wind and storm surge damage, as well as loss amplification, where pressure on the supply of goods and services drives
up prices. 

Grand Turk Island bore the brunt of Ike’s winds and storm surge, and accounts for more than 70% - or $35 million to $140 million - of the total loss. Reports indicate 90 percent of all properties had wind damage. Around 20% of the total loss can be allocated to the southeastern Bahamas, with the rest coming from the North and South Caicos Islands.

Forecast Track

Ike has spent the last 24 hours over the warm waters of the Gulf of Mexico, but despite favorable conditions for intensification has only strengthened slightly to a Category 2 hurricane. However, the central pressure has dropped and the size of the storm has increased dramatically, with hurricane-force winds now extending up to 115 miles (185 km) outward from the centre. The latest data suggests Ike will make landfall on the Texas coast on Friday night.  Although the location is still uncertain, it is currently forecast to make landfall near Freeport which is situated about 44 miles (71km) southwest of Galveston and 56 miles (90 km) south of Houston, meaning both cities will be well within the extent of hurricane force winds. The intensity at landfall
is forecast to be Category 3.

“Ike has now become an exceptionally broad storm, and as a result the majority of offshore platforms will feel its impact to some degree,” said Dr. Ziehmann, director of model management at RMS. “Onshore, a vast area will also be affected by damaging winds if Ike retains its size, and officials in Texas are already instigating mass evacuations of much of the coastline.” 

RMS is continuing to monitor the hurricane and will issue updated reports as the situation unfolds.