With the close of the hurricane season at the end of November, the re/insurer warned that “one relatively subdued North American season doesn’t signal…that it’s time for a market softening”.
Insurer MS Amlin has noted that this year’s hurricane season validated predictions of a “nearly normal” year, ending with 20 named storms, as of the end of November, seven hurricanes and three major hurricanes.
“However, one relatively subdued North American season doesn’t signal that the environment has become more benign, or that it’s time for a market softening,” said Jessica Turner, head of risk analytics at MS Amlin.
“In fact, this season offered a worrying glimpse of what could be to come.
“Record high sea temperatures in the north Atlantic contributed to the rapid intensification of storms. Idalia, for example, surged from 75mph to 130mph in 24-hours,” she said.
“Storms that intensify with little or no warning reduce the window of opportunity for communities to prepare – inflicting potentially greater losses.
”As our climate changes, insurers and communities will need to find new ways to prepare for, and respond to, this growing risk,” Turner added.