LA Wildfires’ Insured Losses Risk Exceeding $10 Billion (1)

Wildfires engulfing swaths of Los Angeles are expected to be one of the nation’s costliest natural disasters, with insurers potentially incurring losses of more than $10 billion.

While a preliminary estimate from Morningstar DBRS points to insured losses in excess of $8 billion, some scenarios could cost insurers more than $10 billion given the expensive properties at risk, according to Bloomberg Intelligence analysts.

The wildfires add pressure to California’s home insurance market, which has faced a growing crisis in recent years. Traditional insurers have pulled back from the state, blaming the rising cost of natural catastrophes ...