L.A. Fires Could Cost Insurers $30 Billion, According to New Forecast -- WSJ

Dow Jones
16 Jan

By Jean Eaglesham

Estimates of the losses to insurers from the Los Angeles wildfires increased as the blazes spread.

Morningstar DBRS analysts now estimate a total insured loss of up to $30 billion, by far the highest for any wildfire in modern times. A few days ago, other industry watchers had pegged the cost to insurers at closer to $20 billion.

Morningstar forecast the disaster will:

-- Worsen the crisis in California's property insurance market

-- Have a "significant but manageable" impact on leading home insurers in the state, including Allstate, Travelers, Mercury General and Chubb

-- Increase costs for reinsurance, or the coverage insurers buy for major disasters. In turn that will put further upward pressure on California home-insurance premiums.

This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage).

(END) Dow Jones Newswires

January 15, 2025 11:00 ET (16:00 GMT)

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