Wildfire cat bond news

The California Wildfire Fund, which was established last year to back some of the wildfire liabilities related to utilities operating in the state, will go back to the reinsurance market to seek a renewal and an expansion of its first program for 2020 and beyond.

Reinsurance broker and advisor Guy Carpenter has been selected as the sole reinsurance and risk transfer intermediary for the recently established California Wildfire Fund, which is administered by the California Earthquake Authority (CEA).

Rates for renewals of California wildfire exposed reinsurance programs or coverage could see increases of as high as 30% to 70%, as both traditional and alternative markets smart after two heavy loss years, according to S&P Global Ratings.

The California Earthquake Authority (CEA) will look to set up a reinsurance and risk transfer program for California’s recently approved $21 billion wildfire insurance fund, we can now confirm.

The California Earthquake Authority (CEA) is gaining an expanded remit, as it is set to take on administrative responsibility for California’s recently approved $21 billion wildfire insurance fund.

The California Department of Forestry and Fire Protection (Cal Fire) has deemed the cause of the devastating Camp wildfire to be electrical transmission lines owned and operated by Pacific Gas and Electricity (PG&E).

It’s been reported that Warren Buffett’s conglomerate, insurance and reinsurance giant Berkshire Hathaway is looking at a possible acquisition of distressed California electrical utility PG&E Corporation, but Warren Buffett was quick to deny the news.

While reinsurance interests and holders of the Cal Phoenix catastrophe bond await the determination of whether PG&E’s equipment was the cause of the significant Camp wildfire of 2018, another utility’s power lines have now been deemed the cause of one of the largest 2017 blazes.

California focused electrical utility PG&E Corporation (the Pacific Gas and Electric Company) has said that it is “probable” that its equipment will be determined to be an ignition point of the 2018 Camp wildfire.

Bankruptcy threatened California focused electrical utility PG&E Corporation (the Pacific Gas and Electric Company) spent almost $27 million in annual premium for the $200 million of coverage it received from the at-risk Cal Phoenix Re Ltd. (Series 2018-1) catastrophe bond.