Fitch: Catastrophe Modelers Missed Mark on Sandy
Catastrophe modelers have spent a lot of time analyzing the Northeast for windstorm risk, but Superstorm Sandy revealed numerous failings in the programs, resulting in significant losses for some insurers, says Fitch Ratings.
In a special report, “Hurricane Sandy Update,” Fitch says the standout exposure during Sandy was the storm surge that it produced. The storm, despite making landfall on the southern coast of New Jersey, produced record storm surge “associated with hurricanes of greater intensity. As a result, it was the flooding and not the wind that caused the most damage,” says Fitch.