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Tokio Marine Highland

Jacob Badagliacco

The 2023 Atlantic Hurricane Season Is Here: How Mortgage Servicers Should Prepare

This year’s storm season has begun. What can we expect from June 1st through November 30th? NOAA (National Oceanic and Atmospheric Administration) predicts an average hurricane season this year, with a range of 12 to 17 total named storms, five to nine potential hurricanes, and one to four that develop into major hurricanes.

Especially for properties along the east and gulf coasts, how do you prepare for the next six months of heightened hurricane potential? If you’re a mortgage servicer, are you confident that your loan collaterals have the right kind and amount of insurance? Now’s a good time to check for any exposures.

Ask yourself:
• How do you monitor wind and flood insurance coverage?
• At any given time, do you know if any of your loans lack insurance?
• For uninsured or underinsured loans, can you obtain immediate coverage?

You may also want to let your borrowers know of their windstorm or flood risk so they can prepare well by obtaining adequate insurance coverage. History reminds us that a major storm or hurricane can result in catastrophic property and financial loss to uninsured or underinsured homeowners and mortgage servicers.

Each year, the National Hurricane Center (NHC) and Federal Emergency Management Agency (FEMA) strongly urge citizens to prepare and access helpful resources such as Ready.gov and Listo.gov, particularly if their properties are prone to coastal and inland flooding. Let’s learn from the past to best prepare for the future. As the saying goes, “sunny days give us happiness; stormy days give us wisdom.”

If you would like to learn more about storm and flood risks and the available solutions to manage such risks, please contact your Tokio Marine Highland representative or Sheri Kordsmeier, SVP National Sales at (404) 514-9458 or sheri.kordsmeier@tmhighland.com. You may also visit us at tokiomarinehighland.com.

NOAA Releases 2023 Atlantic Hurricane Season Outlook

The National Oceanic and Atmospheric Administration (NOAA) has released its forecast for the 2023 Atlantic hurricane season, which runs from June 1st through November 30th. NOAA predicts an average hurricane season this year, with a range of 12 to 17 total named storms, five to nine potential hurricanes, and one to four that develop into major hurricanes.

NOAA’s report predicts more potential major hurricanes than Colorado State University (CSU), which released an earlier Hurricane Season Outlook that forecasted “slightly below average” activity due to probable El Niño conditions. However, NOAA foresees competing variables that both suppress and fuel storm development – driving this year’s overall forecast for a near-normal season.

“As we saw with Hurricane Ian, it only takes one hurricane to cause widespread devastation and upend lives,” said said Deanne Criswell, FEMA Administrator. “So regardless of the number of storms predicted this season, it is critical that everyone understand their risk and heed the warnings of state and local officials. Whether you live on the coast or further inland, hurricanes can cause serious impacts to everybody in their path. Visit ready.gov or listo.gov for readiness resources, and get real time emergency alerts by downloading the FEMA App. Actions taken today can save your life when disaster strikes. The time to prepare is now.”

Furthermore, agents and brokers should also be encouraging their clients to purchase flood insurance to protect their most valuable assets and to help them recover more quickly should they experience a flood. Private flood solutions offer higher limits, broader coverages and more stable and competitive rates than what is available from the National Flood Insurance Program (NFIP). With over 25 years of industry-leading expertise, Tokio Marine Highland provides a wide range of innovative private flood solutions to ensure the right coverage for your insureds this hurricane season.

To learn more about Tokio Marine Highland’s comprehensive flood offerings or to have us quote your potential target risks, visit our website or contact us at PrivateFloodSolution@tmhighland.com.

2023 Atlantic Hurricane Season: What You Should Know

Colorado State University’s (CSU) predictions for the 2023 Atlantic Hurricane Season forecast “slightly below average” activity due to El Niño conditions. CSU researchers predict six hurricanes (two being Category 3, 4, or 5 hurricanes) and 13 named storms for this year’s hurricane season, which runs from June 1st through November 30th.

According to Phil Klotzbach, a research scientist in the Department of Atmospheric Science at CSU, “current neutral ENSO (El Niño Southern Oscillation) conditions look fairly likely to transition to El Niño this summer/fall. However, there is considerable uncertainty as to how strong an El Niño would be, if it does develop.”

Klotzbach explains that Atlantic hurricane activity usually decreases during El Niño conditions due to escalations in vertical wind shear. However, the forecast authors have indicated that “larger-than-normal uncertainty” exists with this outlook, and that the potential still exists for a busy Atlantic hurricane season if a robust El Niño does not develop.

Nonetheless, the National Oceanic and Atmospheric Administration (NOAA) has recently reported a greater than 90% chance that El Niño conditions form within the next two months and remain until the winter season. The Administration will be releasing their 2023 Atlantic Hurricane Season outlook later next week with more information.

The National Hurricane Center (NHC) and Federal Emergency Management Agency (FEMA) urges citizens to adequately prepare now for potential storms in advance, and those in areas prone to coastal and inland flooding should utilize resources such as Ready.gov and Listo.gov.

Agents and brokers should also be encouraging their clients to purchase flood insurance to protect their most valuable assets and to help them recover more quickly should they experience a flood. Private flood solutions offer higher limits, broader coverages and more stable and competitive rates than what is available from the National Flood Insurance Program (NFIP). With over 25 years of industry-leading expertise, Tokio Marine Highland provides a wide range of innovative private flood solutions to ensure the right coverage for your insureds this hurricane season.

To learn more about Tokio Marine Highland’s comprehensive flood offerings or to have us quote your potential target risks, visit our website or contact us at PrivateFloodSolution@tmhighland.com.

Insurance Careers Month: Helen Shim, Private Flood Underwriter

February is Insurance Careers Month, and there are exciting opportunities available in our diverse, innovative and growing industry. As a recipient of Business Insurance’s Best Places to Work Award for three years in a row, Tokio Marine Highland is creating a culture and environment where employees with diverse backgrounds and skillsets can thrive and grow their careers. Here’s why Helen Shim, Private Flood Underwriter, chose a career in insurance:

Why did you choose a career in insurance?

I chose a career in insurance because of the numerous career opportunities it presented. Regardless of your interests, skills, or experience, the insurance industry offers a wide range of career opportunities. In addition, the industry promotes and prioritizes education and advancement through its many offerings, including mentorship. I have benefited tremendously from training and educational programs, and have been able to grow professionally and explore different areas of expertise.

What do you find most interesting or rewarding about your role?

Often in enterprise businesses, when a person is hired to fill a position, the duties and role become static and repetitive. This is not the case with my career in the insurance industry. No two days are the same as an underwriter working on various projects, managing a full production desk, mentoring junior colleagues, reviewing complex risks issues, and providing a high standard of customer service. Also, as an underwriter involved in various growth initiatives – it is extremely exciting and rewarding to work with a team of like-minded people building and creating a foundation for new products and platforms. This is especially true when the impact of the work can be seen and felt immediately.

For someone who may have never considered the insurance industry for a career, what would you say to change their minds?

It’s an industry that everyone should explore because it has a lot to offer. Many people have the wrong impression of the insurance industry because they don’t really understand it. I would encourage everyone to seek out people who are in the industry and see first-hand what it’s like to work in insurance.

The insurance industry is ever-changing and growing. There’s always something new to learn. As such, there is a big focus on development and growth – it’s part of the culture.

Discover how you can join our team and grow your career like Helen at Tokio Marine Highland. Visit our Careers page to learn more.

6 Tips to Help You Sell More Flood Insurance in 2023

As flooding events across the country continue to increase in frequency and severity, you need a trusted resource for competitive, stable flood insurance markets to help mitigate your clients’ risks. Tokio Marine Highland, boasting more than 25 years of deep flood underwriting expertise and best-in-class service, offers specialized primary and excess flood solutions that you can confidently present to your customers.

Going into 2023, here are our key tips you’ll want to keep in mind when speaking to your clients about property risk management and the importance of flood insurance:

1. Offer It.
When agents and brokers talk with their clients about home or business insurance options, they should take the opportunity to also offer flood insurance as part of a comprehensive solution. Be sure to include a flood insurance quote from the beginning to show your clients that you fully understand the importance of adequately insuring their assets. Don’t wait for another broker to offer something that you don’t!

2. Discuss The Options.
Having a working dialogue with your insured is crucial – if you don’t speak about flood with your client, you won’t sell flood to your client. Your clients should understand that their properties are far more likely to flood than to experience a fire or any other type of loss. There are more flood insurance options available in the private market today that offer higher limits and broader coverages than the National Flood Insurance Program. Reviewing each client’s specific needs and reviewing the available options with them will help you better educate, prepare, and protect them from future risk.

3. Talk About Property Values.
It’s important for agents to recognize that property values are on the rise, which need to be met with adequate coverage. However, the basic limits offered by the National Flood Insurance Program typically don’t come close to reaching the actual replacement cost of buildings today – so obtaining more high-quality coverage from the private market is becoming increasingly attractive, if not necessary.

4. Discuss Costs to Rebuild.
When offering flood insurance, it is worth discussing the costs to repair damage and rebuild with your client. Costs for raw materials and labor are steadily increasing, often making the minimum required coverage insufficient for covering total costs. Should your client’s property experience a loss from a flood, the additional coverage available from the private market will be beneficial for meeting rising repair costs and protecting their savings.

5. Consider Relocation Costs and Loss of Income.
The National Flood Insurance Program does not offer ALE (Additional Living Expense) or BI (Business Interruption) coverage, which can be added to Tokio Marine Highland’s private flood policies. This beneficial coverage supports the additional expenses for temporary relocation or loss of income incurred while damage is being repaired.

6. Remember: Floods Happen Everywhere!
Where it rains, it can flood. Catastrophic flooding events occur annually across the country and in areas that have not historically been impacted. Just because it hasn’t flooded in your neighborhood in the past doesn’t mean that it won’t flood now. It’s necessary for agents, brokers, and consumers to fully understand the importance of carrying proper flood coverage to adequately protect valuable, hard-earned assets.

Tokio Marine Highland looks forward to supporting your clients’ flood insurance needs throughout 2023 and beyond, and we welcome the opportunity to discuss our programs with you in more detail. Contact us at PrivateFloodSolution@tmhighland.com to get in touch with our team, and follow our Private Flood Insurance page on LinkedIn for more flood news, tips, and information.