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Will hurricane season derail the reinsurers?

A forecast for a “hyperactive” Atlantic hurricane season could be awkward for UK reinsurers, but also highlights some of the industry’s current strengths
June 28, 2024
  • "Double" the number of hurricanes this year
  • More competition could reduce rates 

Anyone who has spent a sweaty week on holiday at Disney World could well feel a certain envy for the “snow geese” – America’s army of retirees – who flee Florida in June for a milder New England summer, only to return when the mercury plunges.

Getting out of the way of the Caribbean’s destructive hurricane season has become even more urgent this year. The closely watched tropical storm briefing by weather forecasting agency Euro Tempest forecasts a “hyperactive” hurricane season in 2024, after last year’s relatively benign weather pattern. The agency expects perhaps double the number of recorded hurricanes this season. In essence, there is a 60 per cent chance that mild El Niño conditions will recede and that a harsher ‘La Niña’ effect develops midseason. That usually means stronger winds, says Euro Tempest.  

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