Catastrophe Model Companies Estimate Damages, Provide Basis to Evaluate Themselves.

    Companies marketing Computer Models of Catastrophes have now opened a new line of potential profit for themselves.  They have become estimators.  Their estimates of Catastrophe Claims (not including Uninsured Damages) from Hurricane Ike in Texas vary as widely as the scoring in Little League Teeball games:

                    1.  Eqecat, Inc. (mentioned in a post here on September 7, 2008 that implicated CatClaim Models) reportedly estimates $8,000,000,000.00 to $18,000,000,000.00 or $8 Billion to $18 Billion in Insured CatClaim Damages.  Eqecat is based on Oakland, California.

                    2.  AIR Worldwide, located on the other Coast, in Boston, Massachusetts, estimaes $8 Billion to $12 Billion.

                    3.  Risk Management Solutions Inc., based in Newark, California, reportedly estimates $6 Billion to $16 Billion.  See Erik Holm, "Hurricane Ike's Toll in Texas May Cost Insurers Up to $18 Billion" (Bloomberg.com, Sunday, September 14, 2008).

    The next potential profit line that the Computer Modelmakers may venture into, may be  to provide estimates of paid claims on which Premium Rate Filings will be based -- rather than on the actual payments of actual CatClaims.

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