With hurricane season beginning on June 1, insurers and investors are looking for ways to predict what effect the storms might have on the industry.
To help companies estimate the level of losses they might incur, Fitch Ratings released a special report on May 28, titled “Hurricane Season 2015: A Desk Reference for Insurance Investors,” which analyzes the potential effects of a major storm season on large insurance companies and the industry as a whole. The report also compares forecasts for the 2015 hurricane season from several market experts, including National Oceanic and Atmospheric Administration (NOAA), Colorado State University (CSU) and Tropical Storm Research (TSR).
The experts are leaning toward a less severe North Atlantic hurricane season in 2015. If projections hold true, Florida could reach 10 consecutive years without a hurricane landfall. The last named storm to make landfall in Florida was Hurricane Wilma on Oct. 24, 2005. That year was the most active hurricane season ever recorded, and included Hurricane Katrina and Hurricane Rita among the named storms.
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