Financial reports from major insurance companies

LA Wildfires May Cause $57 Billion in Damages; Insurers' Losses Could Exceed $20 Billion

Jan 9, 2025, 05:06 PM

Wildfires raging across the Los Angeles area are poised to become among the costliest natural disasters in U.S. history, with preliminary estimates from AccuWeather indicating damages and economic losses between $52 billion and $57 billion. The Palisades Fire, the largest of four major blazes currently devastating Los Angeles County, has affected areas including Pacific Palisades and Malibu and could become the most expensive wildfire on record, according to climate scientist Daniel Swain from UCLA. The fires, fueled by fierce winds that are hampering firefighting efforts, have destroyed over 2,000 homes and businesses and caused at least two fatalities. Insurers are bracing for potential losses exceeding $20 billion, according to analysts including those at JPMorgan Chase. The devastation is severely impacting some of California's wealthiest neighborhoods.