As a result of frequent hurricanes, the insurance market has noted a positive correlation between hurricane damages and the amount of insurance monies paid out for such events. Holding the demand for insurance constant, if hurricanes are expected to continue to be a problem, hurricane insurance premiums will most likely:

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The positive correlation between hurricane damages and insurance payouts means that insurance companies will have to pay out more for damages resulting from hurricanes. To compensate for this, they will likely raise premiums for hurricane insurance to maintain their profitability.

As a Result of Frequent Hurricanes, the Insurance Market Has