Below average 2016 hurricane season forecast, on cooler sea temps: TSR
The 2016 Atlantic tropical storm and hurricane season is forecast to produce 12 named storms, 6 hurricanes and 2 major hurricanes, by Tropical Storm Risk, figures that are 20% below the long-term average and 15% below the recent 2006-15 average. The reason for yet another below average prediction of hurricane activity for the Atlantic and Caribbean basin is an expectation that sea surface temperatures will be cooler in the North Atlantic and Caribbean, which is expected to have a neutral effect on the chances of storm development.
The Atlantic hurricane season officially begins in June, and remains the largest seasonal threat to reinsurance capital and catastrophe bonds. Despite a period of low impacts from hurricanes in the Atlantic in recent years, this remains the largest single seasonal threat to insurance-linked securities (ILS) funds and their investors.
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