Fine Weather for Insurers
If that sounds familiar, it should. The team made a similar forecast for the 2007 season, just as they had in 2006. But both of those dire predictions turned out to be high of the mark — 2006 and 2007 turned out to be relatively quiet, and the U.S. was spared landfall by a major hurricane for two years in a row.
Still, insurers should be crossing their fingers that C.S.U.’s prediction will hold true. Lloyd’s of London earlier this month warned that the lack of natural disasters over the last two years has put pressure on insurance firms to cut their premiums, which could shrink their recent record profits.
Another calm hurricane season could also be a blow to proponents of the theory that climate change is fueling ever more powerful hurricanes.