The National Oceanic and Atmospheric Administration predicts high hurricane activity

The National Oceanic and Atmospheric Administration (or (NOAA) predicts high hurricane activity in 2024

• NOAA predicts hyperactive Atlantic hurricane season:
  • Between 17-25 named storms anticipated.
  • 8-13 expected to become hurricanes with winds over 74 mph.
  • 4-7 of those hurricanes could be major with winds over 115 mph.
• 85% chance of an above-average season, eighth in the last 10 years.
• NOAA’s Accumulated Cyclone Energy Index predicts 150%-245% of the median, indicating a hyperactive season.
• Similar outlook from Colorado State University, expecting up to 23 named storms.
• Warm waters in the Atlantic fuel storm development, while El Niño’s absence reduces hindrances.
• Both organizations foresee high cyclone counts due to continued warm waters and a neutral or La Niña climate pattern.
• Odds of a major hurricane landfall along the U.S. coastline at 62%, highest in the Caribbean at 66%.
• Coastal U.S. states face 10-20% higher chances of impacts compared to average.

More recent headlines have been focused on higher insurance costs which have helped fuel inflation in the US. There has been more and more people recently leaving the once popular Florida due to the runaway homeowner insurance costs. Part of the rising costs are the storm risks and another is insurance scams.

Roof contractor will offer a free inspection and claim to find damage, even if there is none. They will then try to convince the homeowner to sign a form, allowing the contractor to file an insurance claim. However, when the insurance company inspects the property, they will often find no damage. The contractor will then sue the insurance company without the homeowner’s permission. The insurance company has two choices: fight the legal battle or settle. In either case, the insurer has to pay up. Many insurance companies are simply saying they don’t want to insure any more, or jack up rates even more.

The combination of weather and scams have led to increased insurance and with it inflation.

Reports of more hurricanes is not good news for the CPI price trends.

This article was written by Greg Michalowski at www.forexlive.com.