2019 Hurricane Best Practices for P&C Insurers

Although El Niño may help quiet the 2019 season, it only takes one storm to cause serious losses. Not to mention, back-to-back storms to wreak operational havoc. Each landfalling hurricane is unique, and brings with it much more than the hurricanes itself: inland flooding, wind, storm surge, hail, and even tornadoes. Beyond the loss exposure, insurers must deal with operational and organizational strain. It’s a season when, perhaps more than any other, insurers need to have their proverbial “ducks in a row.” This means preparing now for the possibility of the worst.

Financial modeling use case: Understanding your actual exposure

As the market continues to become increasingly challenging, having an underwriting and portfolio management platform that includes financial modeling is critical to:

10 hurricane takeaways from 2018

While the 2019 hurricane forecast is quite favorable (NOAA is predicting a 40 percent chance of a near-normal season with 4 to 8 hurricanes and 2 to 4 of them major), it comes with the reminder that it only takes one. Being prepared means being able to handle the trend of back-to-back hurricanes like we saw in 2017, along with the intensity of hurricanes like Michael and Florence in 2018. As you recall, Florence stalled and brought massive inland flooding to the Carolinas. And, six months after making landfall, Hurricane Michael was upgraded to a Category 5 hurricane by NOAA scientists who determined wind speeds had reached 160 mph at landfall.

How to interpret post-event hurricane footprints

KatRisk’s inland flood depth footprint is just one of the many hurricane post-event footprints made available during recent hurricanes.

With hurricanes comes a deluge of data. First, you have to obtain it, then comes the job of making sense of all of it. Whether you use SpatialKey for your analysis, or another data enrichment and geospatial analytics solution, here are a few tips and definitions to help you make sense of event footprints.

Hurricane Michael: The latest data and analytics for P&C insurers

At a glance:

  • Hurricane Michael is a Category 4 hurricane, with maximum sustained winds of 150 mph
  • Located 60 miles SSW of Panama City, Florida
  • Landfall expected along Florida's northeastern Gulf Coast sometime Wednesday afternoon
  • Cat 4 hurricane has never made landfall in the Florida Panhandle
  • Storm surge could reach 9-14+ feet in places
  • Rainfall flooding is a significant threat inland into the Carolinas

Hurricane Michael has rapidly intensified. Now the question is, will it hold its strength with landfall? According to forecasters, Hurricane Michael's rapid intensification over the past two days, despite shifting winds, "defies traditional logic." Michael is expected to make history, as it will be the strongest hurricane to ever come ashore (since 1851) along the Florida Panhandle. Hurricane warnings are currently posted for the Florida Gulf coast from the Alabama/Florida border to Suwanee River, Florida, including Pensacola, Panama City, Destin and Tallahassee.

10 critical hurricane takeaways for P&C insurers

While we would like to think last year’s hurricane season was an anomaly, recent NOAA research points to more frequent and severe hurricanes due to climate warming. This means re/insurers, MGAs, and brokers alike, will need to become more proficient at the job of operationalizing sophisticated hazard data. As a 2017 report from McKinsey & Company found, “...a large operational performance gap remains. These disasters will likely demonstrate significant value for those insurers that have made the investment in digital tools. Insurers that have not and were highly exposed to the hurricanes will find their operations severely challenged….”

Hurricane Florence: The latest data & analytics for P&C insurers

At a glance:

  • Hurricane Florence is a Cat 2 with maximum sustained winds near 105 mph
  • Potentially catastrophic flooding (20+ inches)
  • Maximum storm surge 9-13 feet
  • Catastrophic flash flooding and major river flooding expected
  • More than 1 million evacuated
  • Expected to crawl near or along the coast of the Carolinas through Friday
  • Moving northwest at 10 mph
  • Landfall expected sometime Friday

Centered about 130 miles east-southeast of Wilmington, North Carolina, Florence is moving northwestward—slowly. Although downgraded to a Cat 2, the original storm surge predictions are still valid with the National Hurricane Center stating Wednesday evening that, "the wind field of the hurricane continues to grow in size. This evolution will produce storm surges similar to that of a more intense, but smaller, hurricane, and thus the storm surge values seen in the previous advisory are still valid."

2018 Hurricane Best Practices for P&C Insurers

Just a year ago Hurricane Harvey was making landfall on the Gulf Coast of Texas. Now, the projected hurricane season looks quite different, having been downgraded most recently by NOAA. It would be easy to become complacent—if not for Hurricane Lane, a Category 4 cyclone, barreling down on the Hawaiian islands. We may not see a string of hurricanes like last season, but Hurricane Lane is a reminder that it does, in fact, only take one hurricane. There’s no time like the present to learn from the past and get your operational “ducks in a row”.

Hurricane Lane threatens Hawaiian Islands

Hurricane Lane barrels towards Hawaii (photo courtesy of cbsnews.com)

Almost exactly one year after Hurricane Harvey dropped 50 inches of rain on Texas, Hurricane Lane, a Category 4 cyclone, is now barreling towards the Hawaiian islands, with its outer rainbands already drenching the Big Island. Forecasters say that it’s on course to move very close to the islands, or, make landfall from Thursday through Friday. With the likelihood of a direct hit growing, authorities have urged residents to set aside two weeks worth of food and water.

Hurricane Maria: Atlantic hurricane season living up to its expectations

Hurricane Maria devastation, courtesy of the Wall Street Journal

Hurricane Maria barreled into Puerto Rico on Wednesday as a Category 4 hurricane and was the most powerful storm the island has seen in nearly a century. Earlier in the week, Maria hit the Caribbean island of Dominica as a Category 5 hurricane. Maria is the fourth major hurricane (Category 3 or more) this season and on track with NOAA’s predictions. While four major hurricanes should not come as a surprise, what has been surprising is how close together they have occurred. Maria comes on the heels of Harvey, Irma, and Jose, making it imperative that insurers work to stay ahead of these events and be prepared in a time of extreme weather uncertainty.

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