US: Los Angeles fires insured losses could top $30bn
Source: Middle East Insurance Review | Feb 2025
Wildfires at Los Angeles area are projected to cost insurers as much as $30bn, Wells Fargo and Goldman Sachs said in a report published last month. The total cost is expected to rise to $40bn when considering uninsured losses, said the report.
The economic losses of the most destructive wildfires in Los Angeles’ history could stand at $275bn, as per the AccuWeather estimates.
Moody’s RMS Event Response estimates insured losses for the January 2025 Los Angeles firestorm events will likely range between $20bn and $30bn. The report said that this preliminary estimate reflects impacts observed to date, with significant uncertainty as some of these fires are ongoing. Currently, the Palisades fire is 31% contained and the Eaton fire is 65% contained. Moody’s RMS Event Response, said.
The impact of the wildfires sweeping through the Los Angeles area on California homeowners’ insurers is expected to be manageable despite the projection of heavy economic losses, said S&P Global.
According to a recent ICEYE’s building-level insights, the Palisades fire has burned more than 23,000 acres, leaving a devastating impact. Based on eight data releases, ICEYE identified more than 4,500 buildings as likely destroyed in the area (until 13 January).
ICEYE’s analysis of the Eaton fire has covered over 14,000 acres, and newest data revealed that more than 6,400 buildings were likely destroyed within the ICEYE’s analysed perimeter. The analysis believes that the Hurst fire has burned over 700 acres. M