In late May, NOAA published a report that forecasts a 40% chance of a near-normal hurricane season for 2023. The outlook predicts a range of 12 to 17 total named storms, with winds of 39 mph or higher. Out of these, 5 to 9 could escalate to hurricanes, including 1 to 4 major hurricanes (category 3, 4, or 5; with winds of 111 mph or higher). NOAA's prediction offers a 70% confidence in these ranges.
Despite this near-normal forecast, the threat to businesses located in hurricane-exposed regions remains significant. As we saw with Hurricane Ian, it only takes one hurricane to cause widespread devastation. The impact of such an extreme weather event can be particularly harsh for businesses dealing with higher prices and higher deductibles for their property coverage and those that suffer losses in revenue due to business interruptions that are not covered by traditional property insurance.
Arbol Insurance Services' hurricane coverage, a parametric coverage solution backed by financially robust carriers, offers an efficient way to manage hurricane insurance claims. When a named storm occurs, triggers are activated based on the storm's category and the distance of the storm track from the insured property location(s). National Hurricane Center from dClimate is used to settle claims, ensuring a transparent and swift hurricane settlement process.
Businesses that operate in hurricane-exposed areas such as Florida and face coverage gaps due to high property coverage costs can benefit greatly from Arbol Insurance Services' hurricane insurance. If a named storm hits, the business will be eligible for a loss payment based on the storm's category and its distance from the business location(s). With predetermined coverage triggers and a streamlined payout mechanism, the Named Storm product can provide swift financial assistance when it's most needed.
Arbol Insurance Services' dRe Lifecycle product serves the RiskStream Collaborative consortium of insurers to provide a transparent, efficient view into the named storm payout process with a dashboard that is built on top of a private blockchain. Payout calculations for parametric contracts are immediately available when the industry standard IBTrACS named-storm index is updated. This circumvents the weeks or months of claims processing that customarily follows the manual processes that are part and parcel of legacy applications, In short, Arbol uses blockchain technology to specifically improve operational efficiency.
Even with a forecast for a near-normal hurricane season, the risk remains. That’s why professionals looking to take proactive steps to reduce their exposure to severe weather -risks should consider Arbol Insurance Services hurricane coverage which has been designed to provide businesses with valuable coverage and a much-needed safety net.
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