The US weather service NOAA has just announced its forecast for the 2022 Atlantic hurricane season, and they are another organisation saying it is likely to see above-normal levels of tropical storm activity, with a 65% chance of an above-normal season in 2022.CatastrophePropertyInsurance Industry
That would make it the 7th consecutive Atlantic hurricane season with activity levels above the norm, NOAA’s administrator Rick Spinrad explained just now.
He said NOAA gives a 65% chance that the 2022 Atlantic hurricane season activity is above-normal, a 25% chance it is near-normal, and a 10% chance it is below-normal.
So, it increasingly looks like insurance, reinsurance, catastrophe bond and insurance-linked securities (ILS) interests should prepare for what could be another busy summer hurricane season.
Of course, it is always important to note that just because we have an above-normal level of storms, even major hurricanes, it does not necessarily translate into major losses for the insurance and reinsurance sector.