LA Wildfire Costs Double to $20 Billion Overnight for Insurers

The potential cost for insurers of the devastation caused by the Los Angeles wildfires is now expected to surpass $20 billion, according to analysts at JPMorgan Chase & Co., doubling their estimate from just a day before.

In a note to clients Thursday, analysts led by Jimmy Bhullar warned that the total insured losses could rise further if the fires are not controlled and devastation keeps spreading. On Wednesday, they said they saw losses for the insurance industry approaching $10 billion.

A firefighter hoses down a burning house on Wednesday.

Photographer: Michael Nigro/Bloomberg

The estimate makes this week’s fire potentially costlier than the 2018 Butte County Camp wildfire. With roughly ...