Before storm season officially launched, Tropical Storm Alvin formed in the Pacific Ocean off the Mexican coast. Tropical storms Barbara and Cosme started swirling soon afterward, with Barbara becoming the season’s first hurricane on Monday.
Meanwhile, Floridians still need to strap down their pink flamingo ornaments.
The National Oceanic and Atmospheric Administration (NOAA) predicts a 60% chance of an above-normal hurricane season, a 30% chance of a near-normal season and a 10% chance of a below-normal season in the Atlantic Ocean.
The percentages show a chance of reprieve compared with last year, when NOAA predicted an 85% chance of an above-normal season.
The Pacific Ocean typically kicks into gear early, and the Atlantic Ocean waits until later to get busy. The two feature separate lists for named storms. So far, the Atlantic remains waiting for its first activity, with the name Andrea waiting.
NOAA estimates 13 to 19 named storms, including 3 to 5 major hurricanes.
Florida typically has two sales tax holidays for hurricane and other emergency supplies, but budget debates in Tallahassee have delayed the launch of that tax holiday so far.
The slight downshift in predicted hurricane activity dovetails with reports that Florida’s insurance scene may be stabilizing, if not improving.
Insurance Journal cites a new report from AM Best, a rating agency that focuses on insurance companies, that shows 2024 marked the first time in 8 years that insurance companies reported a profit when combined together. On the whole, AM Best reported that an examination of 45 insurers showed a $207 million profit in 2024 versus the $174 million loss from 2023.
“While the market is showing signs of promise and stability, hurricane-related risks remain the most notable concern,” the AM Best report said.
The stability could extend to homeowners. Amid reports of a profitable hurricane season, insurance companies will be hard pressed to convince the Florida Office of Insurance Regulation to approve increases.
Gov. Ron DeSantis pointed to a January report that showed Florida insurance had the smallest increase in the nation at 1%. Of course, Florida insurance rates are already one of the highest in the country, but stabilizing rates could give a break compared with year after year of significant increases.
Part of the turnaround, according to AM Best, might be the Florida Legislature’s 2022 actions to dissuade homeowners from suing insurance companies. A new state law prevents lawyer fees from being automatically included in the settlement between the homeowner and the insurance company.
However, recent hearings at the Florida Capitol show anything but a clear-cut picture.
A 2022 report commissioned by Florida’s Office of Insurance Regulation showed that insurance companies siphoned more than a billion in profits to shareholders and out-of-state corporations. At the same time, the companies were lobbying the Florida Legislature to change rules around homeowners filing lawsuits.
Some lawmakers and state officials have questioned parts of the report and whether it was complete. After receiving the report, the Office of Insurance Regulation did nothing with it until the Tampa Bay Times revealed its existence earlier this year.