EQECAT raises Katrina damage estimate

Potential insured losses resulting from Hurricane Katrina and its aftermath could range between $14 billion to $22 billion, according to EQECAT Inc. of Oakland, California, a company that develops software technology for extreme risk modeling. “Over the last few days it has become very clear that Hurricane Katrina’s devastation, due to the unprecedented amount of flooding, will make it one of the worst natural disasters in U.S. history,” EQECAT president Richard Clinton said. “The extent and duration of the flood is slowing the recovery process.”Unfortunately, response time is the enemy in all natural disasters and impacts everyone including the insurance industry. Given these circumstances, the insurance industry will likely incur greater losses.” EQECAT and its parent company, ABS Consulting, produce extreme-risk-modelling software, enabling clients to assess and manage potential damage and loss from wind, earthquakes, flood, wildfire, and terrorism, among other perils. One such technology, WORLDCATenterpriseT, includes 167 natural hazard software models for 88 countries spanning six continents.