Latest Estimates of Insured Losses from California Wildfires at $9B to $13B

November 19, 2018

  • November 19, 2018 at 1:54 pm
    Agency says:
    Well-loved. Like or Dislike:
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    Unfortunately many of these homes will be underinsured, even with extended replacement cost coverage. This is because many agents now focus on selling on price than selling on coverages. If an agent has never won an account with a higher quote, they are not doing their job.

  • November 19, 2018 at 2:06 pm
    Boonedoggle says:
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    A question for you actuaries and underwriters. It is my understanding that property coverage rates include a load for “catastrophic events” but with the frequency and severity of hurricanes and wildfires, I am curious if the “cat loads” and reserves are adequate? Any early indications that reinsurance will be stressed or require higher costs? Also, with the recent mergers and acquisitions, is it true that some of the larger PC companies do not have outside reinsurance?

    • November 19, 2018 at 3:51 pm
      Agent says:
      Hot debate. What do you think?
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      California needs to make some drastic changes in forest management instead of letting the environmentalists run the show or we will continue to see these kinds of events and the rates will necessarily skyrocket.

      • November 19, 2018 at 5:33 pm
        John Dick says:
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        Actually, “Agent” contrary to your ill-informed President and you apparently, neither of the major fires in California this year have anything to do with “forest management”. They occurred in “chaparrall shrub-lands” which are an entirely different ecological community from forests. In fact, if anyone had listened to the “environmentalists” these areas would have been subject to controlled prescribed fires for many decades that would have prevented the fuel build-up that caused the current problem.

        • November 20, 2018 at 2:30 am
          Agency says:
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          John, you are turing this to politics and overlooking the facts. Do you know that Governor Brown actually did take action to help reduce wildfire a few months ago, but when you sign something, it takes time to implement, hence it made no impact on the Paradise or other fires. Why did he sign this so late and why didn’t he sign a bipartisan bill from 2016 that would have taken action for preventative measures to mitigate wildfire risk. We in the insurance industry know all too well about risk management and have helped homes from getting burned by doing things such as clearing brush and using fire retardants to help protect homes. The state can do there share too, but they fell short. Those who think the state couldn’t do anything are ignorant on the options they can do and in your case, you are letting politics make you look so ignorant. Furthermore “Agent” didn’t make any mention of the President, so why even drag this in. Is the goal to prevent wildfires or is your goal to pick a fight over politics.

        • November 20, 2018 at 1:12 pm
          Agent says:
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          Hey John, when our great President visited the area, even Moonbeam and Moonbeam elect agreed with him about improving forest management and cutting back on brush and trees. Who is ill informed now?

          • November 20, 2018 at 1:43 pm
            confused says:
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            the president is still ill informed. he did not know the name of the city where the fire was and made up a ‘raking’ comment that the president of finland said they never discussed

          • November 21, 2018 at 12:26 pm
            Agent says:
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            Confused, you are confused about so many things going on in the world and your blind hatred of our President will do you in.. Bob was truly wasting his time with you, no question about it.

          • November 21, 2018 at 1:18 pm
            Rosenblatt says:
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            Why are you attacking confused Agent? Did you not hear Trump call the place “Pleasure” twice before having to be corrected? Did you not hear the President of Finland say he and Trump never discussed “raking”? Both of the things confused wrote were 100% accurate.

          • November 26, 2018 at 11:32 am
            Agent says:
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            Hey Rosenblatt and Moonbeam Confused. Man Made Climate Change is a total hoax perpetrated by disgraced science and it has become your religion. False religion at that.

    • November 20, 2018 at 2:48 pm
      MKB says:
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      @ Boonedoggie- I do not believe the CAT loads are adequate. While I do not underwrite property coverages in CA, I do underwrite E&S property coverages along the Eastern Seaboard. Yes, reinsurance will require higher costs. I am not aware of any P&C insurers that I deal with that do not have outside reinsurance.

      I would agree with Agent’s statement (not political beliefs) that most agents sell on price rather than coverages. Price is about to become a real big issue considering the CAT losses that we have seen over the past 2-3 years. On the other hand, the insured’s who purchased a policy based on price rather than coverage have learned a very valuable lesson during the process of filing CAT claims.

      In my opinion, it is going to get uglier before it gets better.

      • November 20, 2018 at 3:48 pm
        Rosenblatt says:
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        We do write in CA, and we do have a per-event fire reinsurance limit as well as an overall CAT-related reinsurance limit. I posit that most carriers have such reinsurance … and if they don’t, well, best of luck to them and their policyholders who can expect a huge rate increase!

        “On the other hand, the insured’s who purchased a policy based on price rather than coverage have learned a very valuable lesson….”

        Could’ve ended there :) Be it CAT related or just a regular coverage denial, those who only sought a cheap rate likely will be literally paying for it if they file a claim.

      • November 21, 2018 at 11:27 am
        Agent says:
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        MKB, when you have idiots in charge and environmentalists dictating, you are going to have tragedies like what we have seen here. Don’t see how insurance companies are supposed to make a buck in Mexifornia.

  • November 23, 2018 at 10:11 am
    Richard DaSilva says:
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    What seems to be lacking in the comments ….which turned political is the factual reality that FOREST FIRES CANNOT BE STOPPED. WHAT NORMALLY OCCURS IS FIRE BURN-OUT DUE TO NATURAL CAUSES. Prevention is always the key which involves realistic planning to include growth limits, construction practices, forest control and things like that NOT TO MENTION The climate, our climate and natural environment.

    INSURANCE per se neither causes or controls fires….people do. Insurance however does effect the magnitude of the event. Wise use of Insurance availability may be an important factor for fire control.



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