Are You Prepared for Hurricane Season?

Insurance-Linked Securities

When it comes to hurricane losses, your clients don't have to be in the cone of uncertainty.  In honor of National Hurricane Preparedness Week, Amwins is here to help ensure you and your clients are in the best position possible for safety and recovery should a hurricane strike.

We all remember the 2020 hurricane season as the most active on record, with seven major hurricanes and 30 named storms. While NOAA won’t issue their 2021 seasonal outlook until late May, the average annual number of storms has increased as NOAA will now use 1991-2020 as the new 30-year period of record. The new averages for the Atlantic hurricane season are 14 named storms and seven hurricanes. The average for major hurricanes (Category 3, 4 or 5) remains at three.

Additionally, named storms have formed in May over the past six years, prompting NOAA to consider moving the official start of hurricane season to from June 1 to May 15. 

 

Resources

Amwins believes that a strong defense is a good offense, and proper preparation doesn’t happen when your clients find themselves in the path of a hurricane. We offer the following readily available resources to help you prepare ahead of a storm and to achieve fast, efficient handling of insurance claims afterward. 

  • Carrier claims Carrier claims contacts
    • Should you have a claim to report as a result of a storm, the most efficient process is to report the claim directly to the carrier(s) in accordance with the reporting provisions of the policy. When submitting a claim, please include the insured's name and policy number. 

 

Market Impact from 2021 Natural Disasters Thus Far

2021 has already seen unexpected catastrophic losses from the widespread winter storms which impacted Texas and other parts of the Southern U.S. in February.

  • Rolling blackouts resulted in uncovered claims costing insureds millions of dollars
  • Disruption to the Texas power grid and water supply
  • Disruption of global supply chains resulting in raw material shortages
  • Shutdown of the world’s largest petrochemical complex
  • $20B estimated insured loss

This was the largest winter storm event in our industry’s history. Insured losses were unprecedented and not budgeted for by carriers in Q1. The exceedingly high number of claims has stressed many carriers’ ability for claims adjustment and response.

While expectations coming into 2021 were that the market would level out and see increased capacity, this event will have impacts on the market for the remainder of the year and into next. Amwins continues to work closely with our carrier partners to stay abreast of their responses and any new or changing capacity. 

 

Bring on the Future

Before a natural disaster strikes is the ideal time to understand your clients' exposures and be prepared in the event of a claim. Amwins offers our clients a wide range of services, from CAT modeling to claims advocacy, as well as exclusive property capacity that continues to grow during the hard market. As always, we are committed to keeping our clients informed and armed with strategies for success. 

Reach out to your Amwins broker or underwriter for individualized attention.

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More Resources

10 Catastrophe Claim Tips for Severe Weather Season

All Dried Up: Limitations to Standard Flood-Insurance Policies

How to Prepare for Texas Winter Storm Claim Issues

Flood 101: What to Know About Standard Flood Insurance

10 Issues Impacting Hurricane Insurance Coverage