As the 2025 North Atlantic hurricane season officially begins, high-net-worth (HNW) individuals face an increasingly volatile risk landscape.
NOAA forecasts an above-average season, with warm sea surface temperatures and possible La Niña conditions favoring increased storm activity.
For HNW clients, this season demands not only vigilance but a strategic shift toward proactive and holistic risk management. Speaking to Insurance Business, Matt Stadler (pictured), president of Marsh McLennan Agency (MMA), delved into how extreme weather trends are shaping the HNW insurance market and what clients need to know to protect their assets and peace of mind.
“It’s not that hurricanes, wildfires, and hailstorms are new; it’s the frequency of these events that’s caught clients off guard,” Stadler said. “These disasters are no longer once-in-a-lifetime – they’re becoming regular threats.”
HNW individuals often own multiple properties in high-risk regions such as Florida, California, and coastal areas that have become increasingly vulnerable due to warming temperatures and rising sea levels.
According to Guy Carpenter’s 2025 North Atlantic Hurricane Outlook, sea surface temperatures in the Gulf of Mexico are more than 1.5°C above average, and La Niña conditions could emerge later in the season, both of which heighten the risk of major hurricanes.
Amidst this threat, brokers and their HNW clients must navigate an increasingly selective insurance market. Many carriers are reevaluating risk in high-exposure regions, leading to tighter underwriting, higher premiums, and more exclusions.
“The most desirable places to live are also the highest risk,” Stadler said. “That’s driving more clients into excess and surplus lines, where coverage terms can be less favorable.”
However, Stadler also sees a growing shift in mindset around personal lines as a key opportunity. For too long, he said, personal insurance has been treated as a transactional purchase. In the HNW space, where risks can be complex and interconnected, brokers can step in with proactive risk management and expertise.
“There’s an opportunity to blend technology with empathy and expertise. We use tech to provide information and access, but we also deliver real consultation,” said Stadler. “What does the policy cover? How does it support you? And when something goes wrong, we walk that journey with our clients. That’s the kind of support that matters most.”
At MMA, Stadler said their strategy is to make clients more insurable. “We help them improve their risk profiles (by) retrofitting homes, installing fire mitigation systems, then use that to negotiate better terms with carriers,” he said.
“We help clients prepare by fortifying homes with impact-rated windows, reinforced roofing, and other weather-resilient materials. These are steps people often overlook until it’s too late.”
MMA’s Hurricane Resource Center is another example of this proactive approach. The center offers real-time weather updates, FEMA guides, and state flood data, alongside checklists for preparing homes and families before, during, and after a hurricane.
Sophisticated clients are increasingly leveraging advanced technology to monitor and reduce risk, embracing everything from water leak detectors to wildfire detection sensors. Stadler said that these tools help clients go beyond financial protection to preserve the intangible, such as heirlooms, photographs, and other sentimental items.
Although the 2025 hurricane season is projected to be highly active, experts emphasize the unpredictability of landfall locations and storm intensity. Rapid intensification, a phenomenon where storms strengthen dramatically in less than 24 hours, adds another layer of uncertainty.
And despite improved forecasting models, there’s still a limited window for accurate predictions beyond 7-10 days, which means clients can’t afford to wait until a storm is imminent.
Here are a few steps that HNW clients should take well ahead of the season’s storms:
“We can’t predict where a storm will land,” Stadler said. “But we can help clients control what they can: have a plan, build resilience, and know who to call when something goes wrong.”
