Our Planet Climate and Geopolitics
California’s insurance market was already on its knees. The firestorm tearing through some of the wealthiest neighbourhoods in Hollywood and greater LA could well be the last straw.
More than 100,000 California residents lost coverage between 2019 and 2024 and insurers have been fleeing the state ever since fires in 2017 and 2018 wiped out quarter of a century’s worth of profits.
Analysts from JPMorgan say the sector should brace for another £20 billion in losses from six fires across the region. The state’s insurer of last resort, the FAIR Plan, predicts it will be able to pay out but if it needs additional funds it will have to turn to private insurers.
That would drive rates up sharply across the state.
