Willis Re Reports on Insured Losses and Economic Impact Due to Natural Disasters

Willis Re’s insured loss estimates from major natural catastrophes in 2018 of about USD 69.5 billion are one of the highest since the 2011 annual market losses of USD 120 billion. This report from Willis Re summarizes economic and insured losses from the most relevant natural catastrophe events that occurred during 2018. The loss values… Continue reading Willis Re Reports on Insured Losses and Economic Impact Due to Natural Disasters

Tropical Cyclones Causing Billions in Losses Dominate Nat Cat Picture of 2019: Munich Re

Eye of the storm

820 natural catastrophes caused overall losses of US$ 150bn, which is broadly in line with the inflation-adjusted average of the past 30 years, according to Munich Re. A smaller portion of losses was insured compared with 2018: about US$ 52bn. This was due, among other things, to the high share of flood losses, which are… Continue reading Tropical Cyclones Causing Billions in Losses Dominate Nat Cat Picture of 2019: Munich Re

Utility SoCal Edison Agrees to Settlement in 2017, 2018 Fires

Evening power station

California’s second-largest utility company has agreed to pay $360 million to compensate about two dozen local governmental entities for damages and other costs related to a series of fires and resulting mudslides that hit the region in 2017 and 2018. The settlements announced Wednesday show that Southern California Edison, an arm of Edison International, faces… Continue reading Utility SoCal Edison Agrees to Settlement in 2017, 2018 Fires

Other California Utilities Also Face Liability Risks

Ice storm power outage

PG&E Corp. isn’t the only California utility facing liability risks because of fires sparked by its equipment, as disclosures this week by two of the state’s other top utilities show. Shares of Edison International fell almost 5% Wednesday a day after it reported that its Southern California Edison arm likely sparked the 2018 Woolsey Fire,… Continue reading Other California Utilities Also Face Liability Risks

California Blackouts Force Businesses to Tally Their Losses

Backlit power lines pulsing energy into the Las Vegas strip. Bzzzzzzzzzt!

The last time PG&E Corp. shut off electricity in the Sierra Nevada foothills city of Placerville, Calif., Pop Art Custom Framing Gallery lost about $8,000 in four days, according to Daniel Anderson, who owns the store with his wife. Now, the power is off again, part of a second wave of intentional blackouts PG&E began… Continue reading California Blackouts Force Businesses to Tally Their Losses

Second Round of Blackouts Begins in California, With More on Horizon

wildfires and smoke

PG&E Corp. said it would begin shutting off power to 179,000 customers in 17 California counties on Wednesday afternoon, its second major intentional blackout this month meant to head off potential wildfires. The shut-offs were expected to begin at 2 p.m. local time in the Sierra Nevada foothills and 3 p.m. in some counties north… Continue reading Second Round of Blackouts Begins in California, With More on Horizon

Unprecedented Power Outages Begin in California as Winds Bring Critical Fire Danger

Ca property insurance reforms

In an unprecedented move, Pacific Gas & Electric early Wednesday began shutting off power to about 800,000 customers across Northern California in an attempt to avoid wildfires caused by winds damaging power equipment. The power cutoffs started in several counties around Sacramento, including Placer and Yuba, amid increasing winds. Officials said cutoffs will continue throughout… Continue reading Unprecedented Power Outages Begin in California as Winds Bring Critical Fire Danger

California’s Latest Wildfire Problem: Insuring the Tree Trimmers

wildfires and smoke

D.J. Gomes and his logging crew were working in California’s wine country last fall, helping clear vegetation away from power lines and reduce the ever-growing wildfire risk. While they were gone, fire came for their hometown. The disaster that followed, the Camp Fire, killed 86 people and virtually leveled Paradise, where Mr. Gomes’s house was… Continue reading California’s Latest Wildfire Problem: Insuring the Tree Trimmers

Reinsurers Adjusting Risk Appetite after Califorina Wildfires: S&P

Natural disasters and homeowners insurance

Reinsurers have reassessed their risk appetites following successive above-average catastrophe years, especially those from the California wildfires, according to S&P Global Ratings analysts. The California wildfires of 2017 and 2018 caused roughly $33 billion in insured losses, surprising re/insurers as losses were outside of the market understanding of the risk and affected both property and… Continue reading Reinsurers Adjusting Risk Appetite after Califorina Wildfires: S&P

Actuaries Provide a Look at Wildfire Risk Ahead of 2019 Season Peak

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

As peak wildfire season approaches with the kickoff of summer 2019, a new issue paper from the American Academy of Actuaries examines the key challenges and information that property insurance consumers, insurers, public policymakers, and other stakeholders need to know about wildfire risk. “California’s devastating 2017 and 2018 wildfires were a wake-up call to all… Continue reading Actuaries Provide a Look at Wildfire Risk Ahead of 2019 Season Peak