Cyclones occur in clusters rather than randomly, according to new research that has implications for the insurance industry.

The work by the University of Queensland and the University of Exeter, UK, shows that short, intense periods of cyclones are followed by relatively long, quiet periods.

Although the research was based on hurricanes in the Caribbean, professor of statistical climatology at the University of Exeter David Stephenson says the research applies elsewhere, including Australia.

He says it will help insurers understand there are variations in the rate of cyclones.

“The assumption has been that the rate can stay constant, but in fact it varies quite a lot,” he told insuranceNEWS.com.au.

The variation means ecosystems have time to recover from natural catastrophes. “The research also has wider implications for other systems such as the dynamics and viability of insurance companies and the provision of reinsurance protection.

“Reinsurance companies are a bit like ecosystems and so need time to recover after major losses, so clustering of cyclones allows the industry to build profits before the next cluster of storm losses.”

Professor Stephenson says the clustering of storms is a global phenomenon that needs to be better quantified statistically in risk assessments.