The National Oceanic and Atmospheric Administration (NOAA) has put out its first forecast of the 2025 hurricane season. They expect a substantially above average year, which would have a tremendous impact on coastal communities and the insurance industry. NOAA is expecting a very active season in the long run! They’re predicting 13 – 19 named storms, with 6 – 10 of those expected to increase in intensity and develop into hurricanes. The agency still expects three to five storms to grow into major hurricanes.
John Cangialosi, Senior Hurricane Specialist at the National Hurricane Center. He pointed out that the last active hurricane season started with Hurricane Beryl. Even as the signs of this hurricane season are starting to show, Cangialosi stresses the importance of preparedness from federal to local government and community.
Yet the insurance industry is preparing for the consequences of these predictions. Bill Clark, CEO of Demex, a reinsurance analytics group, mentioned the difficult issues currently for insurance companies.
“Reinsurance (insurance for insurance) costs for severe convective storm losses are at a 20-year high and, coupled with limited availability, it is leaving insurers hamstrung and unable to transfer most of their mounting losses,” – Bill Clark, CEO of Demex.
Like the tragic storms of 2019, in recent years the Midwest has suffered outbreaks of severe thunderstorms produced by damaging hail, hurricane force wind, and tornadoes. The impacts of the 2024 hurricane season was felt strongest by the devastation caused by both Hurricanes Helene and Milton. Collectively, they were responsible for more than $37 billion in insured losses according to Aon. In the last 10 years, insured losses have averaged over $33 billion annually. This would be a historic 90% increase over the past decade.
The impacts of these big hurricanes can not only be measured in dollars. The tragic legacy of Hurricane Katrina still weighs heavily on residents of Louisiana, where the storm took 1,392 lives in 2005. In response to this disaster, significant improvements have been made to the region’s flood infrastructure over the past twenty years. Cynthia Lee Sheng, President of Jefferson County Parish, pointed out the proactive measures undertaken since Katrina to mitigate future risks.
“It’s estimated that $13 is saved for every $1 spent on mitigation efforts,” – Cynthia Lee Sheng, President of Jefferson County Parish.
Together, these investments in durable infrastructure are designed to protect communities from future catastrophe as hurricane predictions become increasingly dire. The federal government has retrofitted levees, flood walls and pumping stations to make them more resistant to future storms.
NOAA is preparing for the 2024 Atlantic hurricane season. Both TxDOT and WSDOT are committed to improving safety through implementation of state-of-the-art weather prediction methods and reliable modeling. They have fought to increase staffing at the hurricane center ahead of a busy season for storms.
“Weather prediction, modeling and protecting human lives and property is our top priority. So we are fully staffed at the hurricane center, and we definitely are ready to go,” – Grimm.