2011 Hurricane Season Arrives
The 2011 Atlantic Hurricane season is officially underway, and with it comes the annual concerns for Florida and other coastal states. In the insurance industry, we tend to focus on the economic effects of hurricanes– the design of insurers’ reinsurance programs, the impact on Citizens Property Insurance Corporation and its reliance on assessments, and the ability of the Florida Hurricane Catastrophe Fund to reimburse insurers with its cash-on-hand and bonding ability. However, these considerations pale in comparison to concerns over human safety and the potential impacts on our coastal communities.
As this year’s hurricane season gets underway, we encourage Floridians and other coastal residents to prepare for the possibility of hurricane strikes this year. Florida largely has been spared from hurricane activity over the last few years, which unfortunately can lead to fading memories of the devastation caused by the series of storms in 2004 and 2005. ….And just because Florida hasn’t experienced hurricanes for a few years, the storms have been there… last season saw its share of hurricanes, they just diverted away from us.
Dr. Gray from Colorado State University has become known for his hurricane forecasts, and this year promises to be a busy one. In a recent forecast, Dr. Gray suggested this season will include 16 named storms, with 9 of those becoming hurricanes and five of those being major hurricanes. Of course, these forecasts cannot answer the critical question of where these storms will strike. Nonetheless, Dr. Gray’s research shows that hurricanes are more likely to affect Florida than other coastal states.
Insurance-related issues arising from protecting against and responding to hurricanes are important. However, on this day marking the beginning of the hurricane season, we can set those issues aside and focus on hurricane preparedness and taking the steps necessary to protect our families and communities from the storms we know sooner or later will come again.