California wildfires flare up again in critical fire weather conditions

Wildfires in California have once again flared up and begun to expand, as critical fire weather conditions set in over the weekend resulting in evacuation orders and warnings. The 2020 wildfire season in California is now the largest on record, with 7,928 fire incidents having already burned some 3.63 million acres  read the full article →

Western U.S. wildfire insured losses estimated up to $8bn by RMS

Insurance and potentially reinsurance market losses from the ongoing wildfires across western U.S. states are now estimated to have reached between $4 billion to as much as $8 billion, by catastrophe risk modeller RMS. The range is closely aligned with Moody's prediction for industry losses from the wildfires so far this read the full article →

ILS fund subrogation benefits from PG&E may take a year to flow

While Pacific Gas and Electricity (PG&E), the wildfire stricken Californian electrical utility, made its $11 billion of subrogation payments in July, the benefits for insurance-linked securities (ILS) funds are expected to take as long as a year to be fully accounted for in the valuation of their exposed ILS and read the full article →

U.S. wildfire industry losses estimated at $5bn to $8bn by Moody’s

Western U.S. wildfires so far this year have damaged or destroyed around 9,657 residential and commercial structures, while burning more than 5 million acres and the toll for the insurance and reinsurance industry could be as much as $8 billion already, according to Moody's. Moody's Investors Service said that insured losses read the full article →

Wildfires may put aggregate cat bonds back in investor focus: Plenum

The ongoing wildfires across California, Oregon and other western parts of the United States may put investor focus back onto aggregate catastrophe bonds, according to specialist insurance-linked securities (ILS) fund manager Plenum Investments. A number of aggregate catastrophe bonds were impacted after losses from the 2018 wildfires in California drove cedants read the full article →

California & U.S. wildfires heading into multi-billion dollar loss territory

Wildfires burning across California continued their destructive paths in recent days, as hot and dry weather combined with strong winds fanned flames, while burns across other states including Oregon, Washington, Colorado and Utah all add to what is now anticipated to be a growing multi-billion dollar loss for the insurance read the full article →

Some of USAA’s loss hit cat bonds get wildfire subrogation return of principal

Some of the loss hit catastrophe bonds sponsored by U.S. primary mutual insurer USAA have benefited from a return of principal with respect to previously made loss payments under certain reinsurance agreements, presumably a sign of wildfire related subrogation recoveries flowing to the benefit of cat bond funds and investors. USAA read the full article →

California wildfire damage continues, heatwave to challenge fire containment

Property damage from the severe California wildfires continues, with now close to 4,000 structures having been destroyed in recent weeks and with a heatwave and potential record temperatures forecast for the coming days, further containment of the fires looks challenging. When we last covered the California wildfires earlier this week the read the full article →

Australia’s summer catastrophe industry loss hits A$5.4bn

Insurance and reinsurance industry losses from the spate of catastrophe events that impacted Australia through its summer months in 2019/20 are now estimated to have reached A$5.4 billion, according to the Insurance Council of Australia (ICA). That's a continued rise from the almost A$5.1 billion of industry losses reported back in read the full article →

California wildfires destroy almost 3,000 structures in August

California's wildfires have continued to destroy properties over the weekend and while the main blazes are more under control thanks to cooler weather, the costs to insurance and potentially reinsurance markets are on the rise. In our coverage last week we explained that an estimate from Moody’s Investors Service suggested insurance read the full article →