Initial Forecast: $5-10B Insured Losses Expected From Sandy: Eqecat

As the east coast braces for the impact of Hurricane Sandy, catastrophe risk modeling firm Eqecat issued this morning a preliminary estimate for potential economic and insured losses.

Eqecat said Sandy is a large storm, impacting 20 percent of the U.S. population. Economic damages are expected to be $10-20 billion, and insured losses are expected to be between $5-10 billion, according to the firm’s initial estimate.

By comparison, the estimated economic damages for large-scale storms similar to Sandy were: Hurricane Irene at $10 billion, and Hurricane Ike in 2008, at $20 billion.

Eqecat said it will continue to provide updates as the storm continues.

Hurricane Sandy is expected to make landfall in Cape May County, N.J., later Monday, according to the National Hurricane Center.