6/5/2018

Here Comes the Hurricanes

“What are your thoughts heading into 2018’s hurricane season?”

By Phil Gusman

Coming off of an active 2017 hurricane season in the U.S., what are your thoughts heading into 2018’s season with predictions for slightly above-average activity?

“Successive hurricane strikes are of great concern. For in-house counsel, ensure your company has the proper amount of reinsurance. Reinsurance can help through risk transfer, allowing more flexible capital management and better solvency margins. Logistically, make sure your company’s catastrophe plan is current and ready for immediate deployment after a storm.”

Jason Montes,
Senior Counsel, Claims & Litigation, Citizens Property Insurance Corporation, CLM Fellow since 2014.

“The insurance industry must take what it learned in 2017 and be ready with staffing plans that consider both catastrophe operations as well as local claims. Insurers now have data available that can be utilized in pre-season meetings both internally and with external vendors to strategize on how to be best prepared.”

Jim Cole,
Shareholder, Marshall Dennehey Warner Coleman & Goggin P.C. CLM Member since 2012.

“Given the sensitivity of Atlantic Basin hurricane activity on El Niño (ENSO) conditions, and given that ENSO forecasts in April for the upcoming season are subject to updates, one cannot place too much confidence in seasonal hurricane forecasts issued several months in advance. Waiting even just one more month though will improve forecast ability considerably.”

Peter Sousounis,
Vice President, Director of Meteorology, AIR Worldwide. CLM Fellow since 2018.

“Even though 2017 generated an extraordinary number of hurricane-related claims in the U.S., the nation’s property insurers scored, in 2017, their highest-ever overall customer satisfaction levels, according to J.D. Power’s 2018 Property Claims Satisfaction Study. It’s a positive sign as 2018’s Atlantic hurricane season begins.”

Michael Barry,
Head of Media and Public Affairs, Insurance Information Institute. CLM Fellow since 2018.

$92 Billion

Insured losses from 2017’s Hurricanes Harvey, Irma, and Maria.

Source: Munich Re

14

Number of named storms projected for the 2018 Atlantic hurricane season, which includes seven hurricanes and three major hurricanes.
Hurricane activity is predicted to be about 135 percent of the average season.

Source: Colorado State University

17

Number of named storms during the 2017 Atlantic hurricane season.

Source: NOAA

40,000+

Number of Hurricane Harvey claims fully or partially accepted by the Texas Windstorm Insurance Association, the state’s property insurer of last resort, as of April 5.

Source: TWIA

$49.8 Billion

Insured losses in 2016 dollars for 2005’s Hurricane Katrina,
the costliest hurricane to strike the U.S.

Source: Property Claim Services

 



Phil Gusman is managing editor of CLM magazine, a publication of the CLM. He can be reached at phil.gusman@theclm.org.

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