Introduction to the 2025 Hurricane Season

Government scientists on Thursday released a forecast for the 2025 hurricane season, predicting a 60% chance it will be an above-average season. The National Oceanic and Atmospheric Administration, or NOAA, predicts this season will bring 13 to 19 named storms with winds 39 miles per hour or higher.

Predictions and Preparations

It predicts six to 10 of the forecasted storms will grow to hurricane status, and three to five will become major hurricanes. Laura Grimm, the acting administrator of the NOAA and a marine scientist, sidestepped specific questions about how budget cuts aimed at climate science would affect the organization’s work and highlighted the vital work of the agency to help communities prepare and save lives.

NOAA’s Priorities

"Weather prediction, modeling and protecting human lives and property is our top priority. So we are fully staffed at the hurricane center, and we definitely are ready to go," Grimm said in a news conference held in Jefferson Parish, Louisiana, to commemorate 20 years since Hurricane Katrina. Grimm also pointed out, thanks to improvements in the science and technology over the last 20 years, that NOAA’s hurricane prediction was spot-on last year.

Recent Losses

Hurricanes Helene and Milton caused more than $37 billion in insured losses in 2024, according to a report from Aon. Despite those losses, the U.S. property casualty insurance industry saw its best underwriting performance since 2013, according to a report from the Insurance Information Institute and Milliman.

Challenges Facing the Insurance Industry

But the report concludes that January’s devastating wildfires in California and economic challenges related to tariffs could dampen the industry’s results in 2025. Insurers and reinsurers are collectively facing more than $50 billion in losses from the Los Angeles wildfires. The Midwest has also suffered outbreaks of severe thunderstorms with damaging hail, wind and tornadoes this spring.

Increasing Losses

The Storm Prediction Center had tallied 883 local tornado reports this year as of Monday, 35% higher than average for this time of year. Aon said the severe convective storms have caused an estimated $10 billion in insured losses in the first quarter. A storm over three days in May added another estimated $7 billion to insurers’ tally.

Existential Threat

The last 10 years have averaged more than $33 billion annually in insured losses, a 90% increase from the previous decade. It’s an existential threat to the insurance industry and its ability to provide affordable insurance to homeowners, according to Bill Clark CEO of Demex, a reinsurance analytics group. And the problem is getting worse, not better.

Causes of Skyrocketing Losses

Whether hurricanes, wildfires or severe storms, Aon blames the skyrocketing losses on growing exposure, meaning more people are living where climate risks are higher and the cost of their homes, cars and all the stuff inside is more expensive.

Mitigation Efforts

The insurance industry is working to push state and local efforts to build resiliency and improve mitigation efforts — meaning better building codes, public works projects that protect homes and properties, and tough standards on defensible spaces around buildings, for instance. The president of Jefferson County Parish, Cynthia Lee Sheng, pointed to all the efforts made in the 20 years since Hurricane Katrina hit Louisiana, killing 1,392 people in 2005.

Savings from Mitigation

The government overhauled levees, flood walls, and pumping stations. "It’s estimated that $13 is saved for every $1 spent on mitigation efforts," Sheng said. "Hurricane Katrina also changed the face of disaster recovery. Key agencies have learned to work together to provide assistance, coordinate efforts and ensure efficient response."

Conclusion

In conclusion, the 2025 hurricane season is expected to be above-average, with a significant number of named storms and hurricanes predicted. The insurance industry is facing significant challenges due to increasing losses from natural disasters, but mitigation efforts can help reduce the impact of these events.

FAQs

Q: What is the predicted number of named storms for the 2025 hurricane season?
A: The National Oceanic and Atmospheric Administration (NOAA) predicts 13 to 19 named storms with winds 39 miles per hour or higher.
Q: How many hurricanes are expected to occur during the 2025 season?
A: NOAA predicts six to 10 of the forecasted storms will grow to hurricane status, and three to five will become major hurricanes.
Q: What is the main cause of the increasing losses from natural disasters?
A: Aon blames the skyrocketing losses on growing exposure, meaning more people are living where climate risks are higher and the cost of their homes, cars and all the stuff inside is more expensive.
Q: What is the estimated savings from mitigation efforts?
A: It’s estimated that $13 is saved for every $1 spent on mitigation efforts.

Introduction to Recent Flight Disruptions

The FAA Air Traffic Control tower at Newark Liberty International Airport in Newark, New Jersey has been experiencing disruptions. American Airlines chief financial officer, Devon May, stated that some travelers are avoiding Newark Liberty International Airport for other options in the area after a spate of recent disruptions, but cautioned that the impact is "modest."

Causes of Disruptions

The Federal Aviation Administration this week ordered airlines to temporarily cut flights at Newark to relieve congestion there as carriers grapple with a shortage of air traffic controllers, equipment outages, and runway construction at the New Jersey airport. Bad weather has also added to disruptions in recent weeks.

Impact on Airlines

American has a roughly 4% market share at Newark, according to the most recent data from the Port Authority of New York and New Jersey, which operates the airport along with LaGuardia Airport and John F. Kennedy International Airport, both in Queens, New York. "There’s something happening there, but I think it’s relatively modest when you think of the broader network," American’s May said. United Airlines dwarfs all other airlines at Newark with its nearly 70% share. That carrier had proactively announced cuts of 35 flights a day earlier this month to put more slack in the system.

Efforts to Overhaul Air Traffic Control System

Earlier this month, Transportation Secretary Sean Duffy said the U.S. will spend billions to overhaul the aging U.S. air traffic control system. President Donald Trump’s tax bill includes $12.5 billion for air traffic control modernization and staffing.

Conclusion

In conclusion, recent flight disruptions at Newark Liberty International Airport have led to some travelers avoiding the airport in favor of other options in the area. However, the impact on airlines is relatively modest. Efforts are being made to overhaul the aging U.S. air traffic control system, which should help to alleviate congestion and reduce disruptions in the future.

FAQs

Q: What is causing flight disruptions at Newark Liberty International Airport?
A: Flight disruptions at Newark Liberty International Airport are being caused by a shortage of air traffic controllers, equipment outages, runway construction, and bad weather.
Q: How are airlines being affected by the disruptions?
A: Airlines are being affected by the disruptions, with some experiencing a modest impact on their operations. United Airlines, which has a nearly 70% market share at Newark, has proactively cut 35 flights a day to put more slack in the system.
Q: What is being done to address the issue?
A: The U.S. is planning to spend billions to overhaul the aging U.S. air traffic control system, with $12.5 billion allocated for air traffic control modernization and staffing.
Q: Are travelers avoiding Newark Liberty International Airport?
A: Yes, some travelers are avoiding Newark Liberty International Airport in favor of other options in the area, such as LaGuardia, JFK, and Philadelphia airports.

Only half of health insurer Cigna’s clients currently cover the popular GLP-1 weight loss drugs Wegovy and Zepbound because of their high costs. But the company’s pharmacy benefits unit Evernorth has reached a deal with drug makers Eli Lilly and Novo Nordisk which it said will bring prices down for employers and their workers.

The New Deal

“This solution is really focused towards clients that aren’t covering it today, and what it allows us to do is one, to bring it on at a reduced price for the plan sponsor, but also capping out the members’ cost at $200,” per month said Harold Carter, Evernorth senior vice president of pharmacy relations. Many of Evernorth’s clients currently offer the drugs to workers with co-pays as low as $25 per month. For those who have been hesitant to cover the medications because of cost, capping employee out-of-pocket costs at $200 would amount to less than half the price consumers pay in cash without insurance if they bought the drug through Eli Lilly or Novo Nordisk’s direct-to-consumer websites.

Simplified Pre-Authorization Process

The new deal will also include a simplified pre-authorization process for the drugs, and patients will be able to access the drugs for the same price across retail pharmacies, or through Evernorth home delivery service, the company said. Those new services and discounts will also be provided for Evernorth clients already offering the weight loss drugs.

Cost Reduction

“Clients that cover weight loss today, we’re expecting that they can see, you know, up to almost 20% a reduction [in] their costs … with this updated arrangement that we’ve been able to get with Lily and Novo, ” said Carter, adding that Evernorth was able to get better pricing while maintaining coverage for both drugs.

Industry Impact

Last month, CVS Caremark announced that it had struck a deal to make Novo’s Wegovy its primary weight loss drug starting in the second half of the year, which would mean coverage for Lilly’s Zepbound would no longer be preferred. Novo Nordisk would not comment on the new pharmacy benefits arrangements. But a spokesperson for Eli Lilly told CNBC, “Lilly will continue to work with those in health care, government and the industry to find creative solutions that help people with obesity access Zepbound.”

Net Prices Coming Down

While Cigna would not discuss the actual discounts reached under the new Evernorth arrangement, analysts say large employers and other insurers have gotten between 30% to 50% below the drugs’ list price. While Novo’s Wegovy lists for $1,350 per month, in March the average net price for the drug was $616 according to an analysis by the Institute for Clinical and Economic Review. For Lilly’s Zepbound, the list price is roughly $1,100 per month, while the net price is $725.

Future Implications

These new arrangements by Evernorth and CVS Caremark could bring those net prices even lower for employers, just as the government is negotiating Medicare discounts for Novo Nordisk’s Ozempic and Wegovy under the Inflation Reduction Act. Those Medicare negotiated rates will take effect in 2027 — effectively making Novo Nordisk’s products the preferred drugs in the program. That could see prices come down even further, said Ben Ippolito, senior fellow in health economics at the American Enterprise Institute.

Conclusion

Evernorth’s new weight loss pricing program will begin in the second half of the year, as employers begin to make decisions about coverage for next year’s plans. This new deal is expected to make weight loss drugs more accessible to those who need them, while also reducing costs for employers and employees.

FAQs

Q: What is the new deal between Evernorth and Eli Lilly and Novo Nordisk?
A: The new deal will bring prices down for employers and their workers for the popular GLP-1 weight loss drugs Wegovy and Zepbound.
Q: How much will employees have to pay for the weight loss drugs?
A: Employees will have their out-of-pocket costs capped at $200 per month.
Q: Will the new deal affect the prices of the weight loss drugs for those who already have coverage?
A: Yes, the new deal is expected to reduce costs for employers and employees who already have coverage for the weight loss drugs.
Q: When will the new pricing program begin?
A: The new pricing program will begin in the second half of the year.
Q: How will the new deal affect the industry?
A: The new deal could bring net prices even lower for employers and may lead to further price reductions in the future.