Aon Benfield makes preliminary forecast of direct insured losses.

Aon Benfield has forecast direct insured losses from the alleged Bernard Madoff Ponzi scheme as between $760m and $3.8bn.

“While the maximum potential exposed insurance limits are estimated to be over $6bn, the range of direct insured losses will be a far smaller number, most likely somewhere between $760m and $3.8bn, with a best estimate of $1.8bn,” said Stephen Mildenhall, head of Aon Benfield’s Actuarial and Enterprise Risk Management practice. Investors lost between $25bn and $50bn in the alleged fraud.