Calls for better modelling of business interruption losses following Hurricane Sandy

Contingent business interruption models beginning to emerge, but data a challenge

Hurricane Sandy has highlighted the need for business interruption losses to be more fully reflected in catastrophe models, according to analysts.

The super storm, which hit the east coast of the US at the end of October, could cause as much as $15 billion of insured losses, according to modelling companies. Economic losses could be as high as $20 billion.

Analysts say the nature of the damage demonstrates the need for the impact of business interruption claims to be more fully reflected within