Total insurance claims for wildfires in the US will likely exceed US$10 billion for the second year in a row, according to a new report.
Aon’s Impact Forecasting team recently released its monthly Global Catastrophe Recap report, which evaluated the impact of natural disasters worldwide during November.
Notable in the report was the devastation caused by the California wildfires, including the Camp Fire in Butte County, the deadliest and most destructive wildfire on record.
The Camp Fire killed 88 people, left dozens unaccounted for, and damaged or destroyed 19,357 homes and other structures. The fire largely destroyed the city of Paradise, Calif.
Total aggregated economic losses were conservatively estimated to exceed US$10 billion, according to Aon.
“With annual wildfire industry payouts expected to exceed US$10 billion for the second consecutive year in the United States, the standard assumption of wildfire being a secondary peril may evolve in the future,” said Steve Bowen, Impact Forecasting director and meteorologist. “While insurers remain firmly in position to handle the volume of claims in the aftermath of recent events, these heightened losses put a further spotlight on the growing risk of the peril around the world. The growth of exposure into unknown fire locations and the prospect of more weather and climate-driven effects will require continued focus on mitigation initiatives.”