Thursday, October 29, 2015

Ca. wildfire losses set to near $2 billion

More bad news for insurance carriers operating in California – a report released this week from Guy Carpenter & Company anticipates that insured losses from the two September wildfires in the state could approach and even exceed $1.75 billion. That’s up significantly from a report earlier this month from Aon forecasting losses of $1 billion. The report, “US Wildfire: An Ever Present Hazard,” utilizes data from Guy Carpenter clients and subsidiaries, as well as from the National Interagency Fire Center, which found that 9.27 million acres were destroyed by the fires through October 8. That’s compared to a 10-year average of about 6.3 million. The damages near those incurred in the 1991 Oakland firestorm that cost more than $2.6 billion in 2014 dollars. In fact, they are so high that many insurers are pulling coverage from policyholders due to an “unacceptable risk of wildfire.” Already, several homeowners have found themselves served with non-renewal notices and no other choice but to seek out expensive coverage in the excess and surplus lines market...more

1 comment:

Anonymous said...

I have no proof of this but arson is likely the culprit in most of those fires. Man-caused fires set by YOU GUESS WHO. A cheap way to attack a country and get away with it. As the drought continues so will fighting very large fires become common place. Your home or ranch may be the next target.