94% increase in frequency of severe hurricanes hitting the Caribbean in the last ten years

Climate change is increasing the intensity of storms, causing more widespread damage
Hurricane Melissa was the first Category 5 hurricane to make landfall in Jamaica and caused $8.8bn in economic losses
Insurance helps hotels reopen faster and limits wider economic disruption

The frequency of the most severe hurricanes striking the Caribbean has increased by 94% in the last decade to 31 December 2025* compared with the previous decade shows new research from Atrium, the leading specialty insurer at Lloyd’s.

Caribbean countries were hit 31 times with the most severe hurricanes (Category Three, Four and Five) over the past decade (2016 to December 31 2025), compared with 16 in the decade prior (2006 to December 31 2015).

Warmer ocean temperatures are increasing both the intensity and destructive power of hurricanes**. Storms are retaining their strength for longer after making landfall, while higher levels of atmospheric moisture are leading to heavier rainfall and more widespread flooding from those storms.

Climate change is also extending the Caribbean hurricane season, with tropical cyclones now forming as early as May rather than the traditional start of the season in mid-June***. The longer storm season increases the period during which businesses and communities are exposed to severe weather and the potential for costly damage.

Nick Leppard, Head of Property D&F at Atrium says: “The Caribbean continue to face a trend where the most destructive hurricanes are becoming both more frequent and more damaging. Businesses can no longer rely on historical weather patterns when assessing their exposure to risk.”

“An El Niño year may give the Caribbean some respite from hurricanes this year but few dispute the longer-term direction of travel. That is something insurers and businesses are still grappling with.”

Vital for businesses to have correct insurance to minimise economic damage

Atrium says it is vital for businesses in the Caribbean that have large properties, such as hotels, to have the right insurance that minimises the financial impact of the growing intensity of hurricanes.

Businesses have a much better chance of recovering from a disaster if they have insurance that pays promptly. It’s not just hotel closures that are impacted; the wider economy can also be affected, such as tour guides, restaurants, retail, boat rentals etc.

Nick Leppard says: “The financial impact of a hurricane often lasts far longer than the storm itself. Businesses that have the right insurance in place are far better equipped to reopen quickly and avoid long-term losses.”

“Hotels are often at the heart of local economies, particularly in the Caribbean. Every extra week they remain closed after a major storm has far reaching consequences not just for the business itself, but for employees, suppliers and the wider tourism sector.”

“Building resilience begins long before a storm makes landfall. Ensuring hotels are adequately insured is fundamental to a speedy recovery, safeguarding livelihoods and reducing the broader economic impact of severe weather events across the Caribbean.”

Number of severe storms (cat 3,4,5) to hit the Caribbean last ten years vs ten year prior (Jan 1 – Dec 31)

Countries in the Caribbean Community (CARICOM), Antigua and Barbuda, The Bahamas, Barbados, Belize, Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Suriname, Trinidad and Tobago, Anguilla, Bermuda, British Virgin Islands, Cayman Islands, Turks and Caicos Islands – source: National Oceanic and Atmospheric Administration
IPCC report
Shan, K., Lin, Y., Chu, PS. et al. Seasonal advance of intense tropical cyclones in a warming climate. Nature 623, 83–89 (2023)
****Lloyd’s of London, vulnerability of the global economy to extreme weather https://www.lloyds.com/insights/media-centre/press-releases/lloyds-new-data-tool-highlights-vulnerability-of-the-global-economy-to-extreme-weather