Insurers Brace for Hurricane Season as NOAA Warns of Above-Average Activity

U.S. insurers are preparing for a potentially destructive Atlantic hurricane season after the National Oceanic and Atmospheric Administration (NOAA) forecasted an above-average year, with 13 to 19 named storms, six to 10 hurricanes, and up to five major hurricanes.

The warning comes as insurers already face mounting losses from California wildfires and Midwest storms, which have pushed 2025 claims into the tens of billions. According to Aon, severe weather events in the first quarter alone have triggered more than $17 billion in insured losses, with reinsurance costs now at a 20-year high.

“It’s an existential threat to the insurance industry,” said Bill Clark, CEO of reinsurance analytics firm Demex. “Insurers are unable to transfer most of their mounting losses.”

Despite losses exceeding $37 billion from hurricanes Helene and Milton in 2024, the U.S. property and casualty insurance sector recorded its best underwriting performance in over a decade. But worsening climate-related risks are forcing a renewed push for mitigation, including stronger building codes, flood infrastructure, and community resilience programs.

At a press conference in Louisiana marking 20 years since Hurricane Katrina, NOAA officials emphasized the importance of preparedness.

“We’re fully staffed and ready to go,” said Laura Grimm, acting NOAA administrator. “Prediction and public safety remain our top priorities.”

The agency also highlighted improved modeling accuracy, credited with better forecasting in recent seasons.

As severe weather threats multiply, insurers, local governments, and homeowners are being urged to act decisively — not just to manage risk, but to protect the affordability and availability of insurance across vulnerable U.S. regions.