Worsening hurricanes pose growing threat to investment portfolios

Hurricanes have intensified and become more frequent, posing growing challenges for insurers, investors, and property owners across the US.

The shifting risk landscape will demand close attention from insurance investment professionals as they reassess portfolios, underwriting standards, and investment strategies to take heed of changing weather patterns.

This is according to a new paper, which offers a sharp warning about future hurricane losses in the US under climate change from MS Amlin titled “US hurricane losses could surge by 50% under 2°C global warming”. It said that if global warming reached 2°C, insured hurricane damages could rise by nearly 50%. The study highlights striking regional disparities across the US: projected losses could jump 64% in New York, over 70% in Rhode Island and Massachusetts, 44% in Florida, and as much as 60% in the Carolinas — nearly triple the expected increase in Texas. 

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