Total Insured Losses Estimate from Superstorm Sandy over $11 Billion

According to Property Claims Service (PCS), the estimated insured losses from hurricane Sandy adds up to more than $11 billion, however experts expect this number to rise. The estimate put forth by PCS is not high enough for catastrophe bonds to be used for the losses. This industry loss compilation service defines whether this event qualifies as an insurance payout under the deal's terms. On the other hand, other disaster modeling firms such as AIR Worldwide and RMS are putting losses to over $20 billion, which would result in payouts for two catastrophe bonds. Although the current PCS estimate is favorable for investors, their intial guess has gone up significantly after prior disaster events such as Hurricane Katrina and Hurricane Irene. This storm is continuing to have severe impacts on the east coast of the US and may require using catastrophe bonds for a payout. http://www.weather.com/news/sandy-insured-losses-20121123