Wildfires

Predicting natural disasters is becoming more important for banks and insurers as climate change increases their occurrence. Last year's wildfires in Los Angeles killed 31 people, destroyed more than 16,000 structures and caused as much as $131 billion in economic and property losses.

The insurance industry's research organization added 10 more states to the first four in its Wildfire Prepared Home designation program. About 35% of U.S. homes in high wildfire risk areas are not yet eligible.

Alongside a bill that gives homeowners a year of forbearance after state-declared emergencies, lawmakers will consider extending wildfire-related moratoriums.

Researchers examined more than 580,000 municipal bond issues and say the data shows communities with higher wildfire risk pay higher interest rates.

Nationwide names new cyber lead and IBHS expands wildfire prepared program, plus more insurtech news.

"Wildfire risk is not just an occasional catastrophe, but a recurring cost embedded in the state's economy," said the report issued this week by the California Earthquake Authority.

Satellite data is reshaping the way that the insurance industry thinks about risk.

Society of Actuaries appoints new CEO and Delos expands coverage, plus more insurtech news.

Insurance companies have abandoned some California neighborhoods at lower risk of burning.

PacifiCorp has been lobbying across multiple states for laws that would effectively cap payouts to fire victims.

The majority of insurance professionals responding to a predictions survey said they are expecting an increase in the frequency and severity of major climate events this year.

California AB 1795, the Smoke Damage Recovery Act, would make home insurance more expensive and push more policyholders onto the state's insurer of last resort, according to an insurance industry attorney.

Insurance commissioner Ricardo Lara, responding on social media, said tariffs and ICE raids are making rebuilding more difficult. Advocates also point to federal disaster relief that has been held back.

Nearly 40,000 acres were burned in the Eaton and Palisades wildfires last January, killing at least 31 people and destroying 16,000 structures.

Digital Insurance contacted insurance professionals to comment on the climate crisis and natural disasters.

Since the 1990s, American homes have been systematically underinsured in the event that they are completely destroyed.

Insurers point to billions of dollars in claims paid, while wildfire survivors advocates say many haven't yet received what they are due.

Edison International Chief Executive Officer Pedro Pizarro said it is likely that the company's utility equipment could be found to be associated with the start of the deadly Eaton Fire.

Hedge funds speculating on wildfire insurance claims in California were just dealt a legal blow.

California governor's executive order tasks insurance regulator and other state agencies to make recommendations on mitigating wildfires, insurance affordability and availability, expediting insurance claims and more.