California Wildfire | Los Angeles Wildfires Expected To Cause Billions In Insurance Losses | N18G

Experts warn that the Los Angeles wildfires could result in billions of dollars in insurance losses, with JPMorgan estimating damages could reach $20 billion, doubling previous projections. Moody's forecasts significant losses, particularly in areas with high-value homes. Many homeowners may be left without coverage due to the increasing unavailability of fire policies, as California's insurance market struggles with providers withdrawing due to disaster risks. Wildfires exacerbate these challenges, with premiums expected to rise sharply, following trends seen after past natural disasters like Florida’s hurricanes. Munich Re reports $140 billion in global losses from natural disasters in 2024, fueled by climate change and rising temperatures. Experts highlight that areas like Pacific Palisades will face higher insurance costs, while California residents may find themselves without coverage due to insurers exiting the market. Despite limited price hike regulations, insurers continue to flee the state, bracing for more losses as extreme weather events intensify. Source: ReutersShow more