NOAA released a statement on May 20, 2021, saying its forecasters are calling for another above-normal 2021 Atlantic hurricane season. The outlook also indicates a 30% chance of a near-normal season and a 10% chance of a below-normal season. After 2020’s record-breaking hurricane season Insgroup and other (re)insurers are preparing to absorb potentially substantial losses.
In 2020, economic losses globally reached $190 billion from natural catastrophes and that lead to $89 billion of insured losses according to the Swiss Re Institute. Natural catastrophes and in the Gulf Coast particularly hurricanes are a prime source of volatile underwriting. With this and the global pandemic last year Insgroup is well capitalized and positioned to withstand a significant hurricane season in 2021.
The United States accounts for $119 billion of losses which is a 59% increase from 2019. High-risk states like Florida and Louisiana had a significantly rough year in 2020 that left many people underinsured, and insurers were out of resources to deal with the losses. Both states have talked about senate bills that would help to handle the high volume of property insurance claims coming in. Reach out to your local Insgroup advisor to talk to them about how they can help you be prepared for this hurricane season.