As Carriers Release Loss Estimates, Total Continues to Climb

RMS' estimate for total Japan insured losses has reached $34 billion, but some carriers are still basing their loss estimates on earlier numbers.

Three more carriers announced losses related to the Japan earthquake and tsunami this week. Alterra Capital Holdings expects $60 million to $100 million; Everest Re, $320 million; and Aspen Insurance Holdings, $160 million.

However, those losses are based on industry loss estimates of around $30 billion. Yesterday, RMS revised up once again its estimate for total industry losses .

It's understandable that the fluid nature of such an event makes it difficult for insurers to come up with firm numbers. Since most carrier estimates are based on percentages of their view of the total losses, it's unlikely that they will fluctuate too much — by their very nature, some "give" is built in. Still, this serves as a reminder of the uncertainty that accompanies major cat events.

For a wider view of the industry, Reuters has a table of earlier insurer loss estimates. Also, if you follow me on Twitter, I do my best to tweet out estimates as they cross my desk, including the totals on which they are based.

Nathan Golia is senior editor of Insurance & Technology. He joined the publication in 2010 as associate editor and covers all aspects of the nexus between insurance and information technology, including mobility, distribution, core systems, customer interaction, and risk ... View Full Bio