insurance

Moody’s RMS Event Response has estimated that private market and FAIR Plan insured losses to-date from the Los Angeles, California wildfires will likely fall in a range between $20 billion and $30 billion.

The Lloyd’s insurance and reinsurance market has reported that its London Bridge risk transformation and insurance-linked securities (ILS) platform has now seen $1.92 billion of capital deployed through its cells, with $2.55 billion of capital committed.

Once again, Bermuda has shown its dominant position as a home to structures used for catastrophe bond and insurance-linked securities (ILS) arrangements in 2024, with companies set up for this purpose dominating registrations of new insurance and reinsurance entities in Bermuda last year.

Having originally said that insurance and reinsurance market losses from the Los Angeles, California wildfires were likely to “notably exceed $10 billion,” reinsurance broker Gallagher Re has now issued an updated estimate range, for an industry loss of between $20 billion and $30 billion.

CoreLogic, the risk modelling and catastrophe data company, has provided an initial estimate for insured losses from the Los Angeles, California wildfires, saying the total is expected to fall in a range from $35 billion to as high as $45 billion.

Today, we are delighted to reveal the full agenda for our upcoming catastrophe bond and insurance-linked securities (ILS) conference. Artemis ILS NYC 2025 is being held in New York on February 7th. Tickets are still available but selling fast, so please register soon to ensure you can join us at the event.

With wildfires becoming a more recurring peril for the California property insurance market, alternative capital may be available to provide coverage, including through multiple-peril alternative reinsurance capital instruments, however “pricing is likely to remain a sticking point” according to analysts at Morningstar DBRS.

Stone Ridge Asset Management, the New York based alternative risk premia focused investment manager, appears to have taken the strongest action in terms of marking down its mutual catastrophe bond and insurance-linked securities (ILS) funds on potential exposure to the California wildfires, while most other strategies in the market have barely moved.

Euler ILS Partners, the specialist insurance-linked securities (ILS) investment manager, has issued an event report for the California wildfires, saying the company believes the insurance industry loss may be between $15 billion and $17 billion, but highlighting this depends on costs related to factors such as business interruption and additional living expenses.

Equity analysts at investment bank Berenberg believe the quantum of losses faced by the global insurance and reinsurance industry from the California wildfires may be both significant and unexpected enough to cause a firming of pricing.