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6/6/2011 - Insurance industry expecting an active hurricane season


2011 could be an active year for hurricanes.

It's been an expensive year for the home insurance industry, and insiders believe it may soon prove to be even more costly active hurricane season forecast. Hurricane season begins on June 1st every year.

According to the insurance rating company A.M. Best, global insurers sustained record catastrophe losses in the first quarter of 2011 as millions of homeowners made claims due to environmental disasters. Insurers tell the source that the spat of storms in April - most of which were related to thunderstorms and tornadoes - may prove to be the industry's costliest.

A.M. Best projects U.S. insurers aren't out of the woods yet, however, as the source projects reinsurance costs will likely be steeper due to how many losses there were in the first quarter and weather projections from forecasters. A.M. Best reports forecasters are predicting three to five hurricanes to hit the Atlantic coast. One meteorologist told the source the U.S. has not gone three years without being hit by at least one hurricane since the Civil War-era.

Home insurance claims were particularly prevalent in 2005, as the Insurance Information Institute reports there were 15 named hurricanes, seven of which made landfall.


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