OAKLAND, Calif. - (Business Wire) EQECAT, Inc., Oakland, Calif., the leading authority on extreme-risk modeling, Monday afternoon (Eastern Time) said, based on current storm information provided by the National Oceanic and Atmospheric Administration (NOAA),
initial estimated onshore insured losses from Hurricane Gustav could range from $6 billion to $10 billion, primarily in Louisiana.
In addition, production of crude oil and natural gas offshore in the U.S. Gulf of Mexico will be impacted by asset damage and disruption. EQECAT said it expects about 5 percent of the production capacity for oil, and 5 percent of production capacity for natural gas, for the next year will be shut-in.
EQECAT’s estimates will be updated as additional information about the storm’s characteristics becomes available.
Beyond wind damage to commercial and residential fixed structures, such as office buildings, factories , warehouses, and homes, EQECAT’s insured loss estimates include business interruption, as a result of the destruction of property; and demand surge, which occurs when the demand for products and services to repair damage significantly exceeds the regional supply. Thus, these products and services may have to be brought to the region quickly from distant points, resulting in additional costs for transportation, packaging and manufacture.
Excluded from EQECAT’s insured loss estimates are losses related to flooding, private and commercial automobiles and similar vehicles.
Energy Disruption Estimates Based Upon EQECAT’s Offshore Energy Model
EQECAT’s estimates of the impact on offshore energy were developed through its Gulf of Mexico Offshore Energy Model (OEM). This model helps oil and gas producers, insurers and reinsurers to manage hurricane risk for offshore assets. Currently, the model covers exposures in the U.S. Gulf of Mexico. The EQECAT OEM was launched in May 2007 and is based on rigorous science, engineering research, and robust mathematical methodologies.
EQECAT Representatives Available For Commentary
Representatives of EQECAT, headquartered in Oakland, will be available throughout this storm to provide commentary. For additional information, please contact Eric Samansky, The Samansky Group, at 516-319-0858.
EQECAT Software Enables Clients Worldwide To Assess, Manage Wide Range Of Risks
EQECAT and its parent ABSG Consulting Inc. (ABS Consulting) serve the global property and casualty insurance industry, major multinational corporations and financial institutions. EQECAT is known as the technical leader and innovator in the development of analysis tools and consulting services to quantify exposure to natural and man-made catastrophic risk.
Through its extreme-risk modeling software platform, WORLDCATenterprise™, EQECAT enables clients to assess and manage potential damage and loss from wind, earthquakes, flood, wildfire, and terrorism, among other perils. WORLDCATenterprise™ includes 177 natural hazard software models for 89 countries spanning six continents.
EQECAT was founded in 1994 and is headquartered in Oakland, California. For additional information, please visit www.absconsulting.com and www.EQECAT.com.
The Samansky Group
Eric R. Samansky, 516-319-0858
eric@samanskygroup.com
