The frequency of the most severe hurricanes striking the Caribbean has increased by 94% in the last decade to 31 December 2025.

Research released today by Lloyd’s specialty insurer Atrium, found Caribbean countries were hit 31 times with the most severe hurricanes (Category Three, Four and Five) over the past decade (2016 to 31vDecember 2025), compared with 16 in the previous decade (2006 to 31 December 2015).

Warmer ocean temperatures are increasing both the intensity and destructive power of hurricanes the underwriter added. 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 explained: “The Caribbean continues 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.”

Atrium added 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.

Leppard added: “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.”