The effects of rising claim payouts after recent hurricanes

Based on RMS analysis of insurance claims from Hurricanes Irma and Michael, several factors including social inflation influenced the cost of repairs and high claim payouts, resulting in high premiums and an increased burden on homeowners. (Credit: NOAA)

As another North Atlantic hurricane season begins, I can’t help but reminisce about some of the storms that have occurred over the past 11 years since I joined RMS. My first RMS post-event reconnaissance trip was after Hurricane Irene in 2011 and since then my multiple field trips have included Superstorm Sandy (2012), Hurricanes Matthew (2016), Harvey, Irma and Maria (2017).

While these trips are enlightening for various reasons, particularly for a wind engineer like me, they also provide emotional reminders of the power of hurricanes, and catastrophic events in general, and how they impact communities.