The National Oceanic and Atmospheric Administration (NOAA) has predicted an above-normal hurricane season in terms of the total number of storms. Its 2020 Atlantic Hurricane Season Outlook calls for 13-19 named storms, 6-10 hurricanes, and 3-6 major hurricanes.
This year, the COVID-19 pandemic adds a layer of difficulty to hurricane preparedness, particularly when it comes to evacuation plans. Florida state officials anticipate the challenge of preparing shelters with social distancing measures in place and have asked FEMA for guidance. New Orleans is advising residents to plan to include hand sanitizer and face coverings in their emergency home kits and go-bags.
Likewise, the impending hurricane season subjects managing pandemic response and reopening the economy in its wake to additional uncertainty.
COVID-19 to Increase Hurricane Losses, Widespread Events the Most Artemis, May 26, 2020
Hurricane Season Gets A Little More Complicated With Coronavirus, Bloomberg Green, May 25, 2020
What Happens if a Hurricane Hits During the Pandemic? New York Times, May 24, 2020
COVID-19 to Increase Hurricane Losses, Widespread Events the Most Artemis, May 26, 2020
Global Risk and Insurance Impacts
The European Commission should create a European Union-based resilience framework to provide insurance cover for catastrophes, such as pandemics and huge cyberattacks, the Federation of European Risk Management (FERMA) said Tuesday.
Reuters reports that the proposed framework would involve public-private partnerships and could respond to events that create hefty business losses without physical damage.
Commercial prices climb
Prices for commercial insurance are rising at rates not seen for almost two decades, compounding pressure on businesses that are already struggling to deal with the coronavirus crisis, The Financial Times reports. Industry experts say that prices for some types of cover are doubling as insurers attempt to repair some of the damage the crisis has inflicted on their balance sheets.
Insurers are facing a double hit from coronavirus, the FT says. Claims from customers could pass $100 billion in total, while there has also been a hit to reserves from volatile financial markets.
French ruling puts coronavirus claims on global menu
Reuters reports that AXA will meet the bulk of business interruption claims from some restaurant owners in France after losing a court case seen as a potential precedent for coronavirus-related disputes across the world.
A Paris court ruled last week that AXA should pay a restaurant owner two months of revenue losses caused by the virus pandemic. AXA had argued its policy did not cover business disruption caused by the health crisis.