As the 2025 North Atlantic hurricane season kicks off, high-net-worth individuals are facing a challenging environment filled with increased risks. The National Oceanic and Atmospheric Administration (NOAA) is predicting a season that could be busier than usual, thanks to warmer sea temperatures and the potential for La Niña conditions, which often lead to more storms.
These changes are prompting a shift in how wealthy clients approach their insurance and risk management. Matt Stadler, president of Marsh McLennan Agency (MMA), emphasizes that extreme weather events are happening more frequently. Hurricanes, wildfires, and hailstorms that once seemed rare are now becoming regular occurrences.
Many high-net-worth individuals own multiple properties in areas like Florida and California, which are particularly vulnerable to climate change effects, such as rising sea levels and increased storm intensity. According to Guy Carpenter’s 2025 hurricane outlook, sea surface temperatures in the Gulf of Mexico are significantly higher than average, further raising the stakes for the season.
Insurance companies are responding to this heightened risk by tightening their underwriting processes, which means higher premiums and more exclusions for properties in high-risk areas. Stadler points out that the most desirable locations to live are often the most dangerous, pushing clients toward less favorable insurance options.
Despite these challenges, there is a silver lining. Stadler believes that personal insurance can evolve beyond a simple transaction. Brokers can offer valuable insights and proactive risk management to help clients protect their assets. This includes using technology to enhance risk profiles, such as retrofitting homes with better materials and installing fire mitigation systems.
MMA has also developed tools like the Hurricane Resource Center, which provides real-time weather updates and emergency preparedness checklists. Many clients are now utilizing advanced technology for risk management, including sensors for water leaks and wildfire detection, which help preserve not just property but also sentimental items.
With the hurricane season underway, experts stress the importance of preparation. High-net-worth clients should review their insurance policies, conduct risk audits, invest in resilient home upgrades, and create comprehensive preparedness plans. They should not wait for a storm to approach, as accurate predictions can only be made a week or so in advance.
Stadler sums it up well: while the exact path of a storm is unpredictable, clients can take steps now to build resilience and ensure they know who to contact when trouble arises.