Calm Before the Storm? Why Now is the Best Time to Prepare for CAT Season.
Experts at Colorado State University are predicting 130% of the average CAT season this year in terms of activity and property damage, yet the year so far has been relatively peaceful with few named storms. We’re moving into September, so does that mean that we can rest easy knowing another CAT season has passed? Not quite!
Based on annual trends, that may not be the best course of action, as extreme weather season is just beginning.
The global trend of increasing temperatures is creating patterns of more frequent and severe instances of extreme weather regardless of season. Throughout the country, rising temperatures are creating issues for states feeling the heat.
Texas has had a few disasters in previous years due to abnormally cool winters, but what about its summers? Texas is reporting its hottest summer on record, with Texas 2036 predicting increased chances of urban flooding, increased hurricane intensity, and increased chances of drought and wildfires over the next several decades.
However, even ignoring the looming threats, we can observe states that are experiencing severe weather this year. California has been experiencing more severe wildfires year over year, but it’s not the only state on the West Coast dealing with these blazes. Fox reports that Alaska of all places is also experiencing its worst fires since 2004. There’s been minimal property damage thus far, but 530 wildfires have burned in the area already, forcing some residents to evacuate their homes in anticipation of further destruction.
Unfortunately, living on the East Coast doesn’t protect you from the trend of severe weather either; like Alaska’s wildfire season, hurricane season is nowhere near over. The Weather Channel released compilations of weather data over the past two decades to illustrate how the peak of hurricane season won’t arrive until September, based on year-over-year named storm averages each month.
Source: IMB’s The Weather Channel
You must be prepared for the short and long-term issues that come with CAT season. During periods of low activity, insurance leaders need to adopt a transformation mindset to determine the best solutions for claim volumes that come from unpredictable catastrophes. The only thing you can predict is that eventually, another catastrophe will come. Will you be ready?
We discuss the adoption of a transformation mindset in our white paper, co-authored by CSAA Insurance Group’s Dr. Young. When asked about insurers bearing the brunt of CAT season, she said, “Many companies are preparing for the upcoming season the same way they have done for decades. If companies can leverage data and refine workflows and dispatch, there is potential for flexible models that absorb the shock of these work surges. You can respond more efficiently, using technology, and flatten the labor volatility curve.”
HOMEE has been hard at work curating the best solutions on the market to help insurance carriers weather the storm. Since it acquired MyCAT Marketplace, HOMEE has kept its momentum in spearheading the analog to digital transformation of claims handling. Click here to learn about the insurance industry’s first and only holistic catastrophe marketplace.
HOMEE is leading the digitization of property claims. HOMEE’s pioneering technology connects insurers, policyholders, and skilled service providers throughout the lifecycle of a claim. The HOMEE Direct Repair Marketplace & Claims Management platform, in combination with a highly curated network of service providers, is utilized by leading firms in the insurance sector to dramatically improve the claims experience for policyholders. HOMEE is backed by investment from leading insurance companies such as Liberty Mutual, State Farm, The Hartford, Desjardins, as well as Ferguson Ventures. For additional information on the HOMEE Claims platform visit www.HOMEE.com.