Investing.com -- The Los Angeles wildfires are projected to cause up to $30 billion in insured losses, surpassing the $12.5 billion record set by the 2018 Camp Fire, Morningstar said. .
The fires have destroyed over 12,000 structures, with leading insurers such as State Farm and Allstate (NYSE:ALL) expected to face significant claims. High-end insurers like Chubb Ltd (NYSE:CB) and American International Group Inc (NYSE:AIG) could also be heavily impacted due to the value of properties damaged.
Morningstar warned of worsening challenges in California’s property insurance market, already strained by rising premiums and major insurers withdrawing from the state. The industry’s reliance on reinsurance and the FAIR Plan, a state-backed insurance pool, may face further stress.
Reinsurers have limited wildfire exposure in California, leaving primary insurers to absorb more risk. This event could reshape the pricing and availability of wildfire-related coverage, Morningstar noted.
The report calls for better fire prevention, risk-based pricing, and long-term solutions to stabilize California’s insurance market amid growing climate risks.
Related Articles
Los Angeles wildfires likely to trigger record insured losses, Morningstar says
Brazil's Gol releases new five-year plan ahead of Chapter 11 exit
Goldman Sachs CEO says Apple card partnership may end before 2030
免責聲明：投資有風險，本文並非投資建議，以上內容不應被視為任何金融產品的購買或出售要約、建議或邀請，作者或其他用戶的任何相關討論、評論或帖子也不應被視為此類內容。本文僅供一般參考，不考慮您的個人投資目標、財務狀況或需求。TTM對信息的準確性和完整性不承擔任何責任或保證，投資者應自行研究並在投資前尋求專業建議。