While an exact figure on insured losses in the wake of Hurricane Rita has not been determined, Risk Management Solutions has estimated a likely range of $US4-7 billion, based on current information on landfall location and windspeeds.

The estimate is comprised of $US3-5 billion onshore damage resulting from wind, storm surge, and rainfall-related flood hazards and $US1-2 billion offshore platform damage and loss of production.

The preliminary estimate excludes the repeat flooding of areas of New Orleans over the weekend.

Estimates for insured losses from Rita have varied wildly. Last Friday, before the hurricane hit, Eqecat was predicting losses of $US9-18 billion, while AIR Worldwide’s guesstimate was $US2-2.5 billion. Eqecat then revised its figures and quoted $US3-6 billion of insured losses.