Los Angeles wildfires are estimated to result in losses ranging from $10 billion to $15 billion. While these events are devastating, the financial impact is expected to be sustainable for insurers and reinsurers. Dr Robert Hartwig from the University of South Carolina notes that highly concentrated events like this are “precisely what reinsurance is designed for” and overall impacts will be manageable. Losses will be allocated among insurers based on their market share, with the California FAIR Plan expected to bear a significant portion. As one of the costliest fires in California history, Hartwig shares concern that this could “potentially set back the intent” of recently implemented ratemaking regulations. To read more, click here.