The (First Five) Days After A Hurricane: Preparing for Hurricane Season

As the calendar turns to June 1st, a date that marks the official start of hurricane season, insurance professionals find themselves at a critical juncture. While many in the industry perceive the true onset of hurricane activity to occur in late July or early August, it's crucial to recognize that the potential for hurricanes begins with the first day of June. This date serves as a reminder for firms to be thoroughly prepped and prepared for the storm season ahead.

For insurers, having reinsurance structures firmly in place by June 1st is a common practice. However, a concerning trend has emerged where necessary vendor relationships, which are vital for insurers, Managing General Agents (MGAs), and Third-Party Administrators (TPAs), are not adequately established. This lack of preparation can have a ripple effect with significant consequences.

The sequence of events often unfolds as follows:

1. Insurers lack all necessary agreements.
2. A storm begins to form and gather strength in the ocean.
3. As the storm approaches, insurers realize they are not fully prepared.
4. Insurers scramble to contact vendors.
5. Vendors deliver tough news—they can't immediately respond due to prioritizing clients who were proactive before the hurricane season.

In such situations, insurers are left hoping for the best, relying on internal resources, and crossing their fingers. However, should a hurricane strike an insured area, the first five days following the event become crucial.

During these initial days, insurers must:

- Establish contact with policyholders to reassure them that help is on the way.
- Accept First Notice of Loss (FNOL) promptly.
- Redirect FNOLs to adjusters so that partner restoration companies or other firms can mitigate damage and expedite recovery.

These first five days are make-or-break. Failing to manage them effectively can lead to playing catch-up, opening the door for public adjusters or other representatives to step in and provide the assistance that insurers should have been offering. This not only increases uncertainty and anxiety for claimants but also complicates recovery efforts if multiple storms follow in quick succession, as experienced in Florida with storms like Debbie, Helene, and Milton.

The optimal time to have vendor agreements in place was earlier this year. However, the second-best time is now. To guide insurance professionals in navigating this process—from vendor engagement to event simulation and stress testing systems and processes—a webinar titled "Are Your Claims Partners & Processes Fully Aligned For The 2025 Hurricanes" is scheduled for May 1. Hosted by industry experts Nick and Pete, along with Nicole Preston, Director of Call Center Services at FOCUS, Brendan Voss, Chief Claims Officer for ShoreOne Insurance, and Aaron Getty, President of Joe Taylor Restoration, this webinar promises valuable insights into ensuring readiness for the upcoming hurricane season.

While June 1st may seem like a distant marker for many in the industry, it serves as a crucial reminder of the importance of preparation. By establishing robust vendor relationships and ensuring systems are stress-tested and ready, insurers can navigate the challenges of hurricane season with confidence and provide timely support to those affected by these powerful natural events.

(Note: Nick Lamparelli was a co-author to this article)