Tokio Marine Highland

Jacob Badagliacco

‘95% of Hurricane Activity Still to Come’ in Updated Storm Season Outlook

Forecasters at Colorado State University (CSU) recently released an updated hurricane outlook for the 2023 storm season, which now predicts an above-average number of major storms due to warming Atlantic Ocean temperatures. CSU forecasters foresee 18 named storms this year, which is “above the average of 14.1 observed between 1991 and 2020.” Of those, they forecast that nine will become hurricanes and four becoming major hurricanes, which is “above the average of 3.2 major hurricanes.”

CSU’s outlook coincides with an updated prediction from the National Oceanic and Atmospheric Administration (NOAA), which now also forecasts “above-normal” activity for this year’s hurricane season. NOAA’s previous report forecasted an average storm season with one to four major hurricanes – however, record warming in the Atlantic can “counteract a hurricane-hindering weather pattern called wind shear brought on by the developing El Niño.”

Historically, most hurricanes form between mid-August and mid-October, with the peak of the hurricane season on September 10. Last year, Hurricane Ian developed at the end of September. “While we’re about one-third of the way done with the season, we’ve got about 95% of seasonal activity to go from an historical perspective,” said Colorado State University hurricane researcher Phil Klotzbach.

The National Hurricane Center (NHC) and Federal Emergency Management Agency (FEMA) urges citizens to adequately prepare now for potential storms in advance, and those in areas prone to coastal and inland flooding should utilize resources such as Ready.gov and Listo.gov.

Agents and brokers should encourage their clients to be as prepared as possible while entering the busiest months of hurricane season, and to purchase flood insurance to protect their most valuable assets and to help them recover more quickly should they experience a disaster. Private flood solutions offer higher limits, broader coverages, and more stable and competitive rates than what is available from the National Flood Insurance Program (NFIP). With over 25 years of industry-leading expertise, Tokio Marine Highland provides a wide range of innovative private flood solutions to ensure the right coverage for your insureds this hurricane season.

To learn more about Tokio Marine Highland’s comprehensive flood offerings or to have us quote your potential target risks, visit our website or contact us at PrivateFloodSolution@tmhighland.com.

How to Prepare Fine Art Collections for Storms in 2023

This year’s hurricane season, which runs from June 1st through November 30th, is here. According to the National Oceanic and Atmospheric Administration (NOAA), forecasters predict “near-normal hurricane activity” in the Atlantic this year, with a range of 12-17 named storms, 5-9 that could become hurricanes, and 1-4 major hurricanes. Due to this forecast and the potential risk of flood damage, agents and brokers need to make sure that their clients are prepared, especially those in the possession of fine art collections. Having a plan in place can make the difference between a successful outcome and a catastrophic loss following a powerful storm.

Here’s what you need to know to best prepare your collection for hurricanes in 2023.

1. Stay aware of potential storms/disasters. Don’t be caught off-guard when a storm hits. Stay informed – pay attention to emergency information and alerts.

2. Have an emergency response plan in place. Evacuation and removal plans for all portable items should be established. Clear paths of entry should be noted for all large risks in areas with coastal flooding. Insureds in flood zones should move fine art and collectibles to higher elevations to avoid sudden water surge.

3. Have a potential off-site storage facility ready. Make sure to have a contract in-place with a high-security storage facility in case art pieces need to be relocated.

4. Reach out to TMH with any questions or if a piece becomes damaged. Communication is important – reach out to your agent or broker as soon as possible if an issue arises. Damage from water and mold can usually be fixed if addressed early.

More tips for clients include:

  • Update your inventory – which should include the artist, title, dimensions, condition, image, and location.
  • Identify priority items for evacuation and relocation.
  • Move items away from windows and exterior doors.
  • Relocate items to interior rooms.
  • Don’t store artwork on the floor; everything should be elevated by at least 5”.
  • Never store artwork in the basement.
  • Have packing materials and supplies accessible.
  • Designate a family member or trusted neighbor to periodically check on the collection if you are not able to.
  • Make sure that all emergency contact information is up to date – including fine art broker, art handlers, and storage facilities.

Tokio Marine Highland offers insurance coverage for physical loss and damage risks in the fine art and collectibles market segment. Led by experienced underwriters and claims handlers with deep expertise in the fine art market, our tailored insurance solutions are backed by the financial strength and global resources of Tokio Marine, one of the largest insurance groups in the world and rated A+ by Standard & Poor’s. To learn more about our comprehensive fine art insurance offerings or to have us quote your potential risks, contact us at www.tokiomarinehighland.com.

The 2023 Atlantic Hurricane Season Is Here: How Mortgage Servicers Should Prepare

This year’s storm season has begun. What can we expect from June 1st through November 30th? NOAA (National Oceanic and Atmospheric Administration) predicts an average hurricane season this year, with a range of 12 to 17 total named storms, five to nine potential hurricanes, and one to four that develop into major hurricanes.

Especially for properties along the east and gulf coasts, how do you prepare for the next six months of heightened hurricane potential? If you’re a mortgage servicer, are you confident that your loan collaterals have the right kind and amount of insurance? Now’s a good time to check for any exposures.

Ask yourself:
• How do you monitor wind and flood insurance coverage?
• At any given time, do you know if any of your loans lack insurance?
• For uninsured or underinsured loans, can you obtain immediate coverage?

You may also want to let your borrowers know of their windstorm or flood risk so they can prepare well by obtaining adequate insurance coverage. History reminds us that a major storm or hurricane can result in catastrophic property and financial loss to uninsured or underinsured homeowners and mortgage servicers.

Each year, the National Hurricane Center (NHC) and Federal Emergency Management Agency (FEMA) strongly urge citizens to prepare and access helpful resources such as Ready.gov and Listo.gov, particularly if their properties are prone to coastal and inland flooding. Let’s learn from the past to best prepare for the future. As the saying goes, “sunny days give us happiness; stormy days give us wisdom.”

If you would like to learn more about storm and flood risks and the available solutions to manage such risks, please contact your Tokio Marine Highland representative or Sheri Kordsmeier, SVP National Sales at (404) 514-9458 or sheri.kordsmeier@tmhighland.com. You may also visit us at tokiomarinehighland.com.

NOAA Releases 2023 Atlantic Hurricane Season Outlook

The National Oceanic and Atmospheric Administration (NOAA) has released its forecast for the 2023 Atlantic hurricane season, which runs from June 1st through November 30th. NOAA predicts an average hurricane season this year, with a range of 12 to 17 total named storms, five to nine potential hurricanes, and one to four that develop into major hurricanes.

NOAA’s report predicts more potential major hurricanes than Colorado State University (CSU), which released an earlier Hurricane Season Outlook that forecasted “slightly below average” activity due to probable El Niño conditions. However, NOAA foresees competing variables that both suppress and fuel storm development – driving this year’s overall forecast for a near-normal season.

“As we saw with Hurricane Ian, it only takes one hurricane to cause widespread devastation and upend lives,” said said Deanne Criswell, FEMA Administrator. “So regardless of the number of storms predicted this season, it is critical that everyone understand their risk and heed the warnings of state and local officials. Whether you live on the coast or further inland, hurricanes can cause serious impacts to everybody in their path. Visit ready.gov or listo.gov for readiness resources, and get real time emergency alerts by downloading the FEMA App. Actions taken today can save your life when disaster strikes. The time to prepare is now.”

Furthermore, agents and brokers should also be encouraging their clients to purchase flood insurance to protect their most valuable assets and to help them recover more quickly should they experience a flood. Private flood solutions offer higher limits, broader coverages and more stable and competitive rates than what is available from the National Flood Insurance Program (NFIP). With over 25 years of industry-leading expertise, Tokio Marine Highland provides a wide range of innovative private flood solutions to ensure the right coverage for your insureds this hurricane season.

To learn more about Tokio Marine Highland’s comprehensive flood offerings or to have us quote your potential target risks, visit our website or contact us at PrivateFloodSolution@tmhighland.com.

2023 Atlantic Hurricane Season: What You Should Know

Colorado State University’s (CSU) predictions for the 2023 Atlantic Hurricane Season forecast “slightly below average” activity due to El Niño conditions. CSU researchers predict six hurricanes (two being Category 3, 4, or 5 hurricanes) and 13 named storms for this year’s hurricane season, which runs from June 1st through November 30th.

According to Phil Klotzbach, a research scientist in the Department of Atmospheric Science at CSU, “current neutral ENSO (El Niño Southern Oscillation) conditions look fairly likely to transition to El Niño this summer/fall. However, there is considerable uncertainty as to how strong an El Niño would be, if it does develop.”

Klotzbach explains that Atlantic hurricane activity usually decreases during El Niño conditions due to escalations in vertical wind shear. However, the forecast authors have indicated that “larger-than-normal uncertainty” exists with this outlook, and that the potential still exists for a busy Atlantic hurricane season if a robust El Niño does not develop.

Nonetheless, the National Oceanic and Atmospheric Administration (NOAA) has recently reported a greater than 90% chance that El Niño conditions form within the next two months and remain until the winter season. The Administration will be releasing their 2023 Atlantic Hurricane Season outlook later next week with more information.

The National Hurricane Center (NHC) and Federal Emergency Management Agency (FEMA) urges citizens to adequately prepare now for potential storms in advance, and those in areas prone to coastal and inland flooding should utilize resources such as Ready.gov and Listo.gov.

Agents and brokers should also be encouraging their clients to purchase flood insurance to protect their most valuable assets and to help them recover more quickly should they experience a flood. Private flood solutions offer higher limits, broader coverages and more stable and competitive rates than what is available from the National Flood Insurance Program (NFIP). With over 25 years of industry-leading expertise, Tokio Marine Highland provides a wide range of innovative private flood solutions to ensure the right coverage for your insureds this hurricane season.

To learn more about Tokio Marine Highland’s comprehensive flood offerings or to have us quote your potential target risks, visit our website or contact us at PrivateFloodSolution@tmhighland.com.