California wildfires could cost insurers $20B, highest in state’s history
San Diego County Supervisor Jim Desmond discusses the impact of Californias policies on residents amid uncontained wildfires.
A new analysis by JPMorgan estimates that the overall economic losses and insured losses caused by the deadly wildfires impacting Southern California are likely to be the most costly in state history.
JPMorgan's insurance analysts released a report on Thursday that looked at the exposure of homeowner's and commercial property insurance lines in light of the wildfires that have devastated communities in the Los Angeles area, including Pacific Palisades and Altadena. At least five people have been killed in the fires and over 2,000 homes, businesses and other structures have been damaged or destroyed.
The report noted that nearly 30,000 acres have been impacted by the fire and nearly 15,000 houses and buildings are considered to be at risk as of Thursday – up from 13,000 as of Wednesday morning. Firefighters have struggled to contain the wildfires, which are being driven by strong Santa Ana winds.
«Expectations of economic losses stemming from the fires have more than doubled since yesterday to closer to $50 billion, and we estimate that insured losses from the event could exceed $20 billion (and even more if the fires are not controlled),» JPMorgan analysts wrote. «This would make this event significantly more severe than the 2018 Butte County Camp fires, the highest insured loss wildfires in California's history previously (with insured losses of roughly $10 billion).»
CALIFORNIA WILDFIRES PROMPT SCRUTINY OF FEDERAL, STATE RULES HAMPERING MITIGATION EFFORTS
Khaled Fouad (L) and Mimi Laine ® inspect a family member's property that was destroyed by Eaton Fire on January 9, 2025, in Altadena,
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