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Today marks the official start of the 2011 hurricane season, and forecasts indicate that activity levels will remain above the long-term historical average as a result of warmer than average sea surface temperatures (SSTs) in the Atlantic Ocean. Warmer SSTs increase the probability of hurricane formation—and given the string of catastrophe events in the first half of 2011, many wonder if hurricanes will once again wreak havoc on the U.S. coastline this season. What might the consequences be for the insurance industry?

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