California wildfires could cost insurers $20B, highest in state’s history
Published On Jan 9, 2025, 4:13 PM
A new report from JPMorgan predicts that the insured losses from the ongoing California wildfires could exceed $20 billion, marking the highest insured losses in the state's history. The analysis indicates that economic losses could approach $50 billion, significantly surpassing the previous record set by the 2018 Camp Fire. Factors contributing to the high costs include the destruction of thousands of homes and the fires affecting more affluent areas, increasing the value of properties lost. The fires remain uncontrolled, suggesting that both economic and insured loss estimates could rise further.
Stock Forecasts
PRU
Negative
The insurance sector is expected to face significant challenges and potential losses due to the high insured amounts related to the California wildfires. This may affect larger insurance companies in particular, leading to a downturn in stock prices as the market reacts to the mounting financial liabilities.