Verisk Estimates Industry Insured Losses for the Palisades and Eaton Fires Will Fall Between USD 28 Billion and USD 35 Billion
Verisk (VRSK) estimates that insured industry losses from the Palisades and Eaton fires will total between USD 28 billion and USD 35 billion. The Palisades fire losses are estimated at USD 20-25 billion, while the Eaton fire losses range from USD 8-10 billion. Most losses affect residential properties.
The Palisades fire impacted areas with some of the highest property values nationally, including significant contents exposure like jewelry and fine art. The estimate includes losses to residential, commercial, and industrial properties and automobiles, accounting for demand surge, debris removal, and insured take-up rates.
Notably, Verisk's petition for its U.S. Wildfire Model review has been granted by the California Department of Insurance, marking a significant step in implementing catastrophe modeling for insurance availability across California.
Verisk (VRSK) stima che le perdite dell'industria assicurativa a causa degli incendi di Palisades ed Eaton ammonteranno a un totale compreso tra 28 miliardi e 35 miliardi di USD. Le perdite causate dall'incendio di Palisades sono stimate tra 20 e 25 miliardi di USD, mentre quelle dovute all'incendio di Eaton variano da 8 a 10 miliardi di USD. La maggior parte delle perdite colpisce le proprietà residenziali.
L'incendio di Palisades ha interessato aree con alcuni dei più alti valori immobiliari a livello nazionale, inclusi significativi beni esposti come gioielli e opere d'arte. La stima include perdite di proprietà residenziali, commerciali e industriali, oltre ai veicoli, tenendo conto dell'aumento della domanda, della rimozione dei detriti e dei tassi di adesione assicurativa.
In particolare, la petizione di Verisk per la revisione del suo Modello di Incendio Forestale degli Stati Uniti è stata accettata dal Dipartimento delle Assicurazioni della California, segnando un passo significativo nell'implementazione della modellazione delle catastrofi per la disponibilità delle assicurazioni in tutta la California.
Verisk (VRSK) estima que las pérdidas de la industria aseguradora por los incendios de Palisades y Eaton totalizarán entre 28 mil millones y 35 mil millones de USD. Se estima que las pérdidas del incendio de Palisades oscilan entre 20 y 25 mil millones de USD, mientras que las pérdidas del incendio de Eaton varían de 8 a 10 mil millones de USD. La mayoría de las pérdidas afectan a propiedades residenciales.
El incendio de Palisades afectó áreas con algunos de los valores de propiedad más altos a nivel nacional, incluyendo importantes exposiciones de contenido como joyas y arte fino. La estimación incluye pérdidas de propiedades residenciales, comerciales e industriales, así como de automóviles, teniendo en cuenta el aumento de la demanda, la remoción de escombros y las tasas de adopción de seguros.
Notablemente, la petición de Verisk para la revisión de su Modelo de Incendios Forestales de EE. UU. ha sido concedida por el Departamento de Seguros de California, marcando un paso significativo en la implementación de modelado de catástrofes para la disponibilidad de seguros en toda California.
Verisk (VRSK)는 팔리세이드와 이튼 화재로 인한 보험 산업 손실이 총 280억에서 350억 달러에 이를 것으로 추정하고 있습니다. 팔리세이드 화재 손실은 200억에서 250억 달러로 추정되며, 이튼 화재 손실은 80억에서 100억 달러 범위입니다. 대부분의 손실은 주거용 재산에 영향을 미칩니다.
팔리세이드 화재는 전국적으로 가장 높은 재산 가치가 있는 지역에 영향을 미쳤으며, 보석과 미술품 같은 중요한 내용물 노출이 있었습니다. 이 추정에는 주거용, 상업용 및 산업용 재산과 자동차의 손실이 포함되며, 수요 급증, 잔해 제거 및 보험 가입 비율을 고려하고 있습니다.
특히, Verisk의 미국 산불 모델 검토 청원이 캘리포니아 보험국에 의해 승인되어, 캘리포니아 전역에서 보험 가용성을 위한 재해 모델링을 구현하는 중요한 단계로 기록되었습니다.
Verisk (VRSK) estime que les pertes de l'industrie assurantielle dues aux incendies de Palisades et d'Eaton s'élèveront entre 28 milliards et 35 milliards USD. Les pertes liées à l'incendie de Palisades sont estimées entre 20 et 25 milliards USD, tandis que celles de l'incendie d'Eaton varient de 8 à 10 milliards USD. La majorité des pertes touche des propriétés résidentielles.
L'incendie de Palisades a eu un impact sur des zones présentant certains des plus hauts valeurs immobilières du pays, y compris une exposition significative à des contenus tels que des bijoux et des œuvres d'art. L'estimation inclut les pertes sur des propriétés résidentielles, commerciales et industrielles ainsi que sur des automobiles, en tenant compte de la montée de la demande, de l'enlèvement des débris et des taux d'adhésion à l'assurance.
Il est à noter que la demande de Verisk pour la révision de son modèle d'incendie de forêt aux États-Unis a été acceptée par le Département des Assurances de Californie, marquant une étape importante dans la mise en œuvre de la modélisation des catastrophes pour la disponibilité des assurances à travers la Californie.
Verisk (VRSK) schätzt, dass die versicherten Branchenschäden durch die Palisades- und Eaton-Brände zwischen 28 Milliarden und 35 Milliarden USD liegen werden. Die Schadenshöhe durch den Palisades-Brand wird auf 20 bis 25 Milliarden USD geschätzt, während die Schäden durch den Eaton-Brand zwischen 8 und 10 Milliarden USD variieren. Die meisten Verluste betreffen Wohnimmobilien.
Der Palisades-Brand hatte Auswirkungen auf Gebiete mit einigen der höchsten Immobilienwerte im Land, einschließlich bedeutender Inhaltsrisiken wie Schmuck und Kunstwerke. Die Schätzung umfasst Verluste an Wohn-, Gewerbe- und Industrieimmobilien sowie an Fahrzeugen und berücksichtigt Nachfragespitzen, Trümmerbeseitigung und Versicherungsannahmeraten.
Bemerkenswert ist, dass der Antrag von Verisk auf Überprüfung seines US-Wildfeuermodells vom California Department of Insurance genehmigt wurde, was einen bedeutenden Schritt zur Implementierung von Katastrophenmodellierung für die Versicherungsverfügbarkeit in Kalifornien darstellt.
- First modeler to receive California Department of Insurance review approval for U.S. Wildfire Model
- Strategic positioning in catastrophe modeling and risk assessment market
- None.
Insights
The estimated
Three key aspects deserve attention:
- The significant demand surge implications, given the scale of rebuilding required and historical construction cost trends in the Los Angeles area
- The comprehensive nature of Verisk's analysis, which includes residential, commercial and industrial properties, plus consideration of debris removal costs
- The strategic timing of Verisk's wildfire model submission to California regulators, positioning them as a pioneer in the state's new catastrophe modeling framework
For Verisk (VRSK), this event showcases their analytical capabilities and strengthens their market position as a leading catastrophe risk modeler. Their early submission of the U.S. Wildfire Model to California regulators demonstrates proactive engagement with regulatory requirements and potentially opens new revenue streams as insurers adapt to new state guidelines.
The scale of these losses will likely catalyze changes in the California insurance market, potentially leading to increased demand for Verisk's risk assessment products and services. Insurance carriers may need to reassess their exposure management strategies, creating opportunities for Verisk's analytics solutions.
This estimate includes losses due to fire and is inclusive of losses to the California Fair Plan
BOSTON, Jan. 22, 2025 (GLOBE NEWSWIRE) -- The Extreme Event Solutions group at Verisk (Nasdaq: VRSK), a leading global data analytics and technology provider, estimates that insured industry losses to property for the Palisades and Eaton fires together will fall between USD 28 billion and USD 35 billion. This estimate includes losses due to fire and is inclusive of losses to the California Fair Plan.
Of this total, Verisk estimates insured losses from the Palisades fire will range between USD 20 billion and USD 25 billion, and losses from the Eaton fire will range between USD 8 billion and USD 10 billion. Most of the losses are to residential risks.
"The ongoing devastation from these deadly wildfires is truly heartbreaking," said Rob Newbold, president of Extreme Event Solutions at Verisk. "We are advancing science and risk management to help communities build resilience against disasters like these catastrophic wildfires. The amount of data and insights to support mitigation efforts continues to grow, which can help inform how communities rebuild in the wake of this disaster."
The impacted areas from the Palisades fire include some of the highest property values in the country, and many of the policyholders have considerable contents exposure, including jewelry, fine art and other luxury goods.
Demand surge analysis was completed using historical construction cost data for the Los Angeles area (Los Angeles County and Santa Barbara County) using Verisk’s 360Value® Quarterly Residential Replacement Cost Index (seasonally adjusted).
Given the large number of destroyed structures from these two events, and the need for complete rebuilding, it is likely that losses stemming from debris removal coverage will be non-trivial.
Included in this estimate are losses to residential, commercial, and industrial properties and automobiles for their building, contents, and time element coverages. This estimate accounts for demand surge, debris removal and estimated insured take-up rates.
Verisk’s loss estimates do not include:
- Losses from smoke damage
- Losses from the Hurst fire or other fires during this past month other than Palisades and Eaton
- Losses exacerbated by litigation, fraudulent assignment of benefits, or social inflation
- Losses from guaranteed replacement cost coverage
- Losses from ordinance or law coverage
- Losses to uninsured properties
- Losses to infrastructure
- Losses from extra-contractual obligations
- Losses from hazardous waste cleanup, vandalism, or civil commotion, whether directly or indirectly caused by the event
- Loss adjustment expenses
Update on Verisk U.S. Wildfire Model Review by California Department of Insurance
On January 2, Verisk announced that it was the first modeler to request a review of its U.S. Wildfire Model as part of California Insurance Commissioner Ricardo Lara’s, 'first of its kind' catastrophe modeling and ratemaking regulation, a central part of his Sustainable Insurance Strategy. As of January 16, Verisk’s petition for model review has been granted by the CDI. This marks the commencement of the next step and formal review.
The use of catastrophe models in California is expected to provide consumers, insurers, and regulators with enhanced insights into natural disaster risks and increased insurance availability across the state.
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About Verisk
Verisk (Nasdaq: VRSK) is a leading strategic data analytics and technology partner to the global insurance industry. It empowers clients to strengthen operating efficiency, improve underwriting and claims outcomes, combat fraud and make informed decisions about global risks, including climate change, extreme events, sustainability and political issues. Through advanced data analytics, software, scientific research and deep industry knowledge, Verisk helps build global resilience for individuals, communities and businesses. With teams across more than 20 countries, Verisk consistently earns certification by Great Place to Work and fosters an inclusive culture where all team members feel they belong. For more, visit Verisk.com and the Verisk Newsroom.
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