Insured losses for the California wildfires could hit $13bn

Smethwick Factory Fire

Insured losses from the California wildfires could be between $9bn (£7bn) and $13bn (£10bn), RMS estimates.

Over $7.5-$10bn (£8bn) is the estimated loss for Camp fire in Northern California and $1.5-$3bn (£2.32bn) for Woolsey in Southern California.

The fire claimed 80 lives and destroyed more than 12,000 homes and business in California, early this month.

It is among the 15 fires that broke out this month.

The Camp fire is considered the most destructive fire in California’s history. More than 11,000 structures have burned and 77 fatalities reported.

The fire season represents the second consecutive year with over $10bn (£8bn) in insured losses from wildfire.

Mohsen Rahnama, chief risk modeling officer of RMS, said: “Wildfire is now a major catastrophe risk that must be rigorously managed with the best data and model science.  With increasing exposure due to properties near wildland areas and ongoing climate variability, insurers, policymakers, and homeowners must adapt to the prospect of more frequent and severe wildfires.”

“In the wake of consecutive record-breaking wildfire seasons, we are hopeful that more focus will be placed on fire mitigation, safe construction practices, and community resilience.”

 

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