The 2018 Atlantic hurricane season officially began on June 1st, but got an early start with the first named storm of the season, Alberto, making landfall on Memorial Day. Weather experts have predicted a close-to-average season this year, with a total of 13 to 14 named storms; six of them being hurricanes, and two of those hurricanes being categorized as major. As we wait to see what this season will really bring, here are three lessons from 2017’s hurricane season to carry into 2018.
1. Customer Education is Key.
After 2017’s devastating hurricane season, customers still have questions pertaining to the right type of insurance coverage to protect them from future hurricanes. There is still a tremendous amount of opportunity in the property and casualty insurance industry. Customer education is key to not only selling the proper insurance products, but it also helps to demonstrate the value of the agents as a whole and provide more resilience following a hurricane event.
2. More Focus Needs to be Focused on Preparation.
Preparing homes and buildings before a hurricane is essential for minimizing damage, but preparation should go beyond window shutters and insurance coverage. Enacting and enforcing stronger building codes can save consumers and insurance companies billions of dollars in damages from future hurricanes. The 2018 edition of the Rating the States report published by the Insurance Institute for Business & Home Safety (IBHS) reported that “updated, well-enforced building codes have led to the construction of homes and buildings that can stand up to fierce hurricane winds.”
Florida serves as proof that strong building codes can make a huge impact on the amount of damage a hurricane can cause. The state of Florida now is now ranked top in the nation for strong building codes, according to IBHS. Reports following Hurricane Irma showed that 80% of homes in the hurricane’s path that were built after the mid-1990’s and adhered to the stronger building codes were subject to only a limited amount of damage.
3. The Public-Private Partnership Structure of the Flood Market Needs Reviewing.
There is an ongoing debate on the type of role the private sector should take in increasing the flood market and ensuring more Americans are protected financially. Whether flood insurance should be mandatory for residents of flood-prone areas independent of their risk level or be risk-based to encourage better risk-management practices has yet to be agreed upon. Regardless, the effects of the 2017 hurricane season highlight a need for a structural answer to the national insurance gap, and insurers have the opportunity to act on it.
Formed in 2013, AmSuisse, Inc. has quickly distinguished itself as a wholesale operation that specializes in working very closely with our agents and broker partners to develop responsive, individualized service for each client. Our unparalleled writing support, industry-specific expertise, marketing support, responsive proposals and quotes, strong customer service, and strong relationships with our carrier partners have all helped us to provide the best possible coverage for our clients. To learn more about our available coverage, contact us today at (800) 485-0229 to speak with one of our representatives.