Crum & Forster to Hand $20M PG&E Loss to Reinsurers: Sources

Meadow back burn and Oregon ash tree. River Complex fire in Trinity County, California.

US specialty insurer Crum & Forster is expected to hand $20mn of losses to reinsurers from its line on PG&E’s liability cover, according to The Insurer. The Fairfax Financial subsidiary is understood to have written a $25mn share of the tower for the Californian utility company, which has been affected by the fallout from the… Continue reading Crum & Forster to Hand $20M PG&E Loss to Reinsurers: Sources

Fitch Ratings: November Wildfires Expected to Have Modest Impact on YE P/C Results

Ca property insurance reforms

In Fitch Ratings’ recently published 2019 property/casualty outlook, our estimate of the overall industry combined ratio for the year is projected at 99%, including catastrophe losses from the fourth-quarter California wildfires. While gross insured losses from the fires have been significant, a considerable amount of these losses are expected to be ceded to various global… Continue reading Fitch Ratings: November Wildfires Expected to Have Modest Impact on YE P/C Results

Wildfire Victims Sue AAA’s Northern California Insurance Arm Alleging Negligence

Like many local wildfire victims, Larry Spanier would like to rebuild his home in the Fountaingrove neighborhood that was burned to the ground in the October 2017 blaze. And like many others, Spanier has found himself severely underinsured with his $727,800 structure coverage provided by CSAA Insurance Exchange insufficient to build another similar house. CSAA… Continue reading Wildfire Victims Sue AAA’s Northern California Insurance Arm Alleging Negligence

Assignment Of Benefits Abuse Is Driving Up Insurance Costs In Florida

Florida’s assignment of benefits (AOB) crisis continues to spread statewide and has cost consumers billions of dollars in unnecessary litigation and inflated claim costs, according to an Insurance Information Institute (I.I.I.) study released today. An AOB is a document signed by either an auto or homeowners policyholder which allows a third party, such as an… Continue reading Assignment Of Benefits Abuse Is Driving Up Insurance Costs In Florida

Florida’s Citizens Insurance Pitches 8% Average Rate Increase

Florida insurer of last resort

With the state-backed insurer blaming costly water-damage claims in South Florida, residential customers of Citizens Property Insurance Corp. could see an average 8.2 percent rate increase next year, according to a new proposal. The proposal, which would take effect in September 2019, will go before the Citizens Board of Governors during a meeting Wednesday. If… Continue reading Florida’s Citizens Insurance Pitches 8% Average Rate Increase

2.9 Million Coloradans Now Live in Areas at Risk of Wildfire

Like a volcano, glowing fires started by lightning burn in the Lime Gulch Fire as smoke fills the valleys and mountains in the Platte River Canyon on the evening of June 19, 2013.

The number of Coloradans whose homes are at risk from wildfires soared 45 percent in five years, reflecting the state’s booming population and changing uses of agricultural land, state officials said. The Colorado State Forest Service said 2.9 million people now live in the wildland-urban interface, defined as places where homes are built in or… Continue reading 2.9 Million Coloradans Now Live in Areas at Risk of Wildfire

Florida CFO Calls for Insurers to Step Up Aid in Hurricane Michael Recovery

Huge hurricane between Florida and Cuba. Elements of this image furnished by NASA

Florida Chief Financial Officer (CFO) Jimmy Patronis and Insurance Commissioner David Altmaier spoke with insurance company executives today and called on the industry to step up more to aid in Hurricane Michael recovery. CFO Jimmy Patronis said, “Before Hurricane Michael hit, I put Florida’s insurance industry on notice that I expected they would move quickly… Continue reading Florida CFO Calls for Insurers to Step Up Aid in Hurricane Michael Recovery

Fire-Resistant Homes Curb Damage, Minimal Financial Impact on Home Buyers: Research

Homes in wildfire-prone areas around the U.S. could be built to better withstand blazes without increasing the cost of construction, according to a new report. The research released Tuesday was sponsored in part by the insurance industry and marks the first attempt to quantify the expenses associated with building residences that meet stringent flame-resistant criteria.… Continue reading Fire-Resistant Homes Curb Damage, Minimal Financial Impact on Home Buyers: Research

Deadly California Fires Prompt Bold Thinking About Prevention: Shelters, Strict Zoning, Buyouts

Ca property insurance reforms

Over the years, California has told homeowners to clear brush around houses, required builders to use fire-resistant materials and ordered them to provide easy access to new developments. But that didn’t prevent the deaths of 43 people in last year’s wine country fire siege. It didn’t prevent the destruction of more than 1,400 structures in… Continue reading Deadly California Fires Prompt Bold Thinking About Prevention: Shelters, Strict Zoning, Buyouts

Insured Losses from the Camp and Woolsey Wildfires Estimated Between $9B-$13B

Natural disasters and homeowners insurance

RMS, a global risk modeling and analytics firm, has estimated that the insured loss for the Camp and Woolsey wildfires in California will be between USD $9 and $13 billion ($7.5-$10 billion for Camp; $1.5-$3 billion for Woolsey). The estimate includes property and auto damage, including burn and smoke damage, business interruption (BI), additional living… Continue reading Insured Losses from the Camp and Woolsey Wildfires Estimated Between $9B-$13B