Meteorologists are abuzz over the activity in the tropics. In fact, despite the relative dearth of landfalls in the US, the 2007 hurricane season is running ahead of historical norms and is on track to meet its pre-season billing as an above-average year for tropical activity. If the pattern of elevated activity with no major landfall persists, insurers and policyholders are likely to draw two different conclusions about the risk of hurricanes and the cost of insurance in coastal areas going forward. Insurers will point to elevated activity in three of the past four years (2004, 2005 and 2007) and predictions of more of the same for many years to come, while policyholders and some regulators will cite the passage of two years without a major hurricane landfall in the United States as a reason to lower rates. The annual ritual of insurer and regulator squabbling about the appropriate rates for the 2008 hurricane season, believe it or not, is just around the corner!
Look at the whole neat thing here. Apparently we're not in the clear yet. It was summer-hot today, but there are fronts a-coming that offer a little cooling off and a bit more rain. Hotdamn, rain! There's a treat.