California insurers must reevaluate wildfire risks
Saturday, 08 11 2018, Category: Insurance and Reinsurance, Country: United States
Re/insurers operating in California must re-evaluate the way they approach wildfire risk as the heavy losses experienced over 2017 and during the Carr and Mendocino Complex fires in 2018 may be set to become the ‘new normal’, according to A.M. Best.
A recent report by the rating agency observed that insured wildfire losses rose by almost four times between 2016 and 2017, with six of the twenty most destructive fires in the state’s history having occurred in 2017 alone.
Meanwhile, the recent Carr wildifire has caused at least $1.5 billion in insured losses while the Mendocino Complex has become the largest ever wildfire in Californian history, marking one of the worst starts to the season in memory, with the potential for even greater insured losses than in 2017.