Stronger Storms, Smarter Response: Sedgwick’s Commitment to Clients

As the height of the 2025 catastrophe (CAT) season approaches, the stakes are higher than ever. With forecasts predicting an above-average hurricane season and growing uncertainty around federal disaster response, businesses and claims professionals must be more prepared, agile, and resilient than in years past. At Sedgwick, we’re not just watching the skies – we’re actively preparing for what’s ahead.

The current situation: A perfect storm of risk

According to the National Oceanic and Atmospheric Administration (NOAA), the 2025 Atlantic hurricane season is expected to be “above normal,” with 17 to 25 named storms, 8 to 13 hurricanes, and 4 to 7 major hurricanes (Category 3 or higher). Colorado State University’s forecast echoes this concern, citing record-warm Atlantic sea-surface temperatures and a weakening El Niño as key drivers.

But it’s not just the weather that’s causing concern. Federal disaster response infrastructure is under pressure. NOAA itself is facing budget cuts and staffing shortages, which could impact its ability to deliver timely forecasts and support. FEMA’s ability to respond at full capacity remains uncertain, with internal restructuring and funding gaps raising questions about its readiness to manage large-scale events.

As Andy McCallum, Vice President Specialty Operations, notes, “Given the current state of federal resources, particularly at FEMA, we’re closely monitoring how any limitations might affect large-scale disaster response. It’s more important than ever that we’re prepared to step in quickly and effectively if gaps emerge.”

What businesses should be concerned about

In this evolving landscape, businesses face several critical risks:

• Increased claims volume and complexity: More frequent and severe weather events mean more claims – and more complicated ones. Without strong federal support, private insurers and third-party administrators (TPAs) will take on a greater responsibility.
• Preparedness gaps: Many organizations have not updated their CAT response plans to reflect the new regulatory and environmental realities. This could lead to delays, inefficiencies, and reputational damage.
• Fraud risk: In high-stress CAT scenarios, the risk of fraudulent claims rises. Without granular data and robust investigative tools, false claims can slip through the cracks.

How Sedgwick is staying ahead

At Sedgwick, we’ve taken a proactive, multi-layered approach to CAT preparedness – one that balances short-term readiness with long-term resilience.

Short-term readiness

• Scalable response teams: We’ve built a deep bench of trained adjusters and field experts who can be deployed rapidly to impacted areas.
• Technology-driven triage: Our digital intake tools and mobile response units allow us to assess and prioritize claims quickly, even in high-volume scenarios.
• Client communication: Through regular digital content and direct outreach, we’re keeping clients informed and equipped with the latest insights. Our April blog, “Navigating the Winds of an Uncertain Tornado Season,” laid the groundwork for this season’s preparedness strategy.

Long-term strategy

• Investing in talent and tools: We’re expanding our CAT bench through targeted recruitment and ongoing training. At the same time, we’re investing in technologies like drone inspections, AI-assisted triage, and advanced weather intelligence platforms.
• Scenario planning: We’re modeling various FEMA response scenarios and developing contingency workflows to ensure continuity, no matter what happens at the federal level.
• Industry advocacy: Sedgwick continues to engage with industry coalitions and regulatory bodies to shape future policy and ensure that the voice of claims professionals is heard.

Confidence through preparedness

While the 2025 CAT season brings new challenges, our priority remains the same: being there for our clients when it matters most. We understand the pressure that severe weather events place on businesses, communities, and individuals – and we’re committed to helping you navigate every step of the claims process with clarity, speed, and compassion.

Whether it’s scaling up quickly after a major event, interpreting evolving regulations, or leveraging technology to streamline response, our teams are ready to support you. Because in moments of uncertainty, what matters most is knowing you’re not facing it alone.

Stay informed.

Subscribe to our insights below to receive the latest updates on CAT trends, preparedness strategies, and industry developments — straight to your inbox.

Get prepared.

If you’d like to schedule a CAT preparedness review, please email us at [email protected]