California Wildfire Losses Manageable, According to KBRA

In a new report from Kroll Bond Rating Agency (KBRA), titled Despite Devastation and Tragedy, California Wildfire Losses Manageable for (Re)Insurers, the rating agency said California is experiencing some of the most devastating and catastrophic wildfires in the state's (and country's) history for the second year in a row. In 2017, over 10 million acres burned, and 2018 has seen the most structures destroyed by one single fire. Several estimates put the current insured losses in the range of $2 billion to $6 billion. KBRA expects these losses to be manageable for most (re)insurers. Unfortunately, many lives have been lost, said the rating agency.

At the time of the KBRA report, the California Department of Forestry and Fire Protection (CAL FIRE) reported the Camp and Woolsey wildfires have already destroyed close to 10,000 structures and burned close to 240,000 acres. Five of the top nine most destructive California wildfires have occurred in 2017 and 2018. As California wildfires have raged, there has been some concern that certain home owners may find it increasingly difficult to obtain insurance, said KBRA.

Complimentary access to the full report, Despite Devastation and Tragedy, California Wildfire Losses Manageable for (Re)Insurers, is available on the KBRA website with registration.