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Why El Niño's Promise of a Quieter Hurricane Season May Not Be Good News for Insurers
Insurers are shifting to landfall and property-level exposure after U.S. scientists forecast 8 to 14 named storms and 1 to 3 major hurricanes.
- Property insurers are rethinking hurricane risk assumptions as El Niño lingers, shifting focus from storm frequency to landfall location and property exposure.
- Coastal county populations have risen by more than 40 million since 1970, while home values and reconstruction costs have surged more than 70% and 60% respectively over the past decade.
- Hurricane Andrew, which struck in 1992, serves as a cautionary example; the Swiss Re Institute estimates the storm would cost the insurance industry nearly $100 billion if it struck today.
- Insurers are embracing artificial intelligence to analyze weather and property-level exposure data. Monica Ningen, CEO of Property & Casualty Reinsurance US at Swiss Re, noted that event severity has increased materially over the past decade.
- Climate change is escalating flood and wildfire risks alongside hurricane threats, complicating risk modeling. Steve Bowen, chief science officer at Gallagher Re, cautioned that "history has a limit in terms of how much it can teach us.
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31 Articles
31 Articles
Journal Gazette & Times-Courier+27 Reposted by 27 other sources
Why El Niño's promise of a quieter hurricane season may not be good news for insurers
Combined with higher home values and reconstruction costs, coastal expansion means that even a relatively quiet hurricane season can produce severe losses.
Coverage Details
Total News Sources31
Leaning Left2Leaning Right2Center27Last UpdatedBias Distribution87% Center
Bias Distribution
- 87% of the sources are Center
87% Center
C 87%
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