Ivan damage less than expected, but losses still mounting

Risk modeling agencies are generally lowering their estimates for insured damage as a result of Hurricane Ivan’s assault on the southern U.S., although expectations still vary widely between US$2-$10 billion.
EQECAT estimates insured damages of US$4-$10 billion while Risk Management Solutions pegs initial losses at US$2-$7 billion. AIR Worldwide is at the low end of the range, predicting insured losses of US$3-$6 billion.
These estimates come on top of US$1-$2.5 billion in estimated insured damage as a result of Ivan’s deadly trek through the Caribbean.
Hurricane Ivan hit between Mobile, Alabama and Pensacola, Florida at around 3 a.m. Thursday as a category-3 hurricane, packing sustained winds up to 130 mph. Tornadoes were also reported in some areas.
Insurers dodged a bullet in that New Orleans was spared the brunt of the hurricane. Much of the damage occurred on the east side of the storm, in Florida, where insurers are protected to some extent by state-sponsored reinsurance.
However, estimates remain preliminary as Ivan, now a tropical storm, continues to dump heavy rains on several states. More than one million residents remained without power late Thursday.
President George W. Bush has declared disaster areas in Alabama, Florida, Mississippi and Louisiana.
And coming hot on Ivan’s heels is little sister Jeanne, which has been wreaking havoc in the Dominican Republic and Bahamas. While Jeanne has weakened, it still has the potential to make landfall in the U.S. within days.