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The insured losses from the Los Angeles wildfires are expected to exceed 20
billion dollars

It is reported that the ongoing wildfires in Los Angeles,
California, could be among the most costly fires in the
country’s history.

According to an analysis published by JPMorgan,
expectations for economic losses from the fires in
the region have more than doubled since yesterday,
approaching 50 billion dollars.

The analysis also states that the insured losses from the
fires could exceed 20 billion dollars, and this figure may
increase further if the fires are not brought under control.

The analysis indicates that the loss in question exceeds the
approximately 10 billion dollars in insured losses caused 1.15%, while Mercury General’s stock saw a remarkable
by the 2018 Camp Fire, which was the most costly fire decline of 21.71%.
in U.S. history. It further notes, “The fact that the fires
have not been contained so far and continue to spread California’s insurance market is at risk
means that estimates of potential economic and insured
losses may increase.”
The massive losses caused by the fires are said to create
significant pressure on California’s already fragile
In a statement from the credit rating agency Morningstar housing insurance market. Especially policy cancellations
DBRS, it was reported that the fires in Los Angeles will and the negligence of insurance companies have led to
lead to significant losses for the insurance industry.
intense debates in the region.
The statement highlighted that initial estimates point The economic loss could reach 57 billion dollars
to the total insured loss surpassing 8 billion dollars,
depending on the final number of properties affected by According to initial estimates by AccuWeather, the total
the fires.
damage and economic loss from the fires could range
between 52 and 57 billion dollars. This figure will deeply
There has been a sharp decline in insurance company impact not only insurance companies but also the city’s
stocks
overall economy.
The fires in Los Angeles, which have affected various In regions like Florida, which frequently experiences
parts of the city, caused significant destruction. More floods, home insurance premiums have increased by 30%,
than 10,000 buildings were damaged, with homes and with discussions on excluding flood risk from coverage.
businesses suffering considerable harm. Insured losses Due to the climate crisis, insurance companies worldwide
are expected to surpass the $20 billion threshold. This are attempting to manage these risks through premium
has led to a sharp decline in insurance company stocks.
increases and new products.
Due to the high property values in the region, insured Global Warming and Insurance Demand in Turkey
damages are anticipated to result in billions of dollars in
losses. This situation has led to a sharp decline in insurance The Turkish Insurance Association (TSB) also highlighted
company stocks. Notably, large insurance companies such in its recent analysis that, due to the effects of climate
as Allstate, Chubb, and Travelers experienced significant change, the frequency of disasters such as floods, forest
losses. Travelers’ stock dropped by 3.80%, Chubb’s stock fires, and storms has increased, and the demand for home
decreased by 3.42%, and Allstate’s stock lost 5.43% of insurance has risen. In 2023, the cost of climate-related
its value. American International Group’s shares fell by
disasters to insurance companies increased by 15-20%.