Guy Carpenter Says Wildfire Losses May Exceed $1.75B

October 26, 2015

A briefing from Guy Carpenter & Company, LLC on Monday shows more than 9 million acres were burned by wildfires so far this year, most of that occurring in the Western U.S, and that insured losses from wildfires could approach or exceed $1.75 billion.

A report out from Aon earlier this month forecasts claims from the two California wildfires in September to exceed $1 billion.

The Guy Carpenter briefing, “U.S. Wildfire: An Ever Present Hazard,” states that the wildfire threat in the summer of 2015 was amplified by a strong ridge of high pressure that created very hot and dry conditions in the western U.S.

The report cites data from the National Interagency Fire Center that shows more than 9.27 million acres were burned by wildfires through Oct. 8 compared with 10-year average of roughly 6.3 million.

Charlie Liethen, right, embraces Sharon Dawson, who lost her home in a wildfire, in Middletown, Calif., on Monday. More than 2,000 homes had been confirmed destroyed, with the number likely to go higher as assessment continues. (AP Photo/Noah Berger)
Charlie Liethen, right, embraces Sharon Dawson, who lost her home in a wildfire, in Middletown, Calif., in September. More than 2,000 homes had been confirmed destroyed. (AP Photo/Noah Berger)

“Wildfire is a significant peril impacting insurers in the United States each year,” Tim Gardner, CEO of U.S. Operations, stated in the brief. “Preliminary data indicates that 2015 insured losses from wildfires may approach or exceed $1.75 billion. Guy Carpenter works with our clients to evaluate their exposure and to deliver a comprehensive wildfire risk management solution.”

Guy Carpenter is a wholly owned subsidiary of Marsh & McLennan Cos.

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