The wildfire in Los Angeles, USA, continues to spread, causing a huge impact on the insurance industry.
JPMorgan Chase estimates that the insurance losses from this wildfire could exceed $20 billion (RM89.905 billion), far surpassing the $12.5 billion (RM56.19 billion) from the 2018 'Camp Fire,' potentially becoming California's most expensive fire.
As the Los Angeles wildfire continues to spread, it is causing severe damage to local residents and businesses, while also putting immense pressure on the insurance industry.
JPMorgan Chase's analysis pointed out that Allstate, Chubb, and Travelers are the insurance companies most at risk of claims in this wildfire, especially Chubb. As it primarily serves high-net-worth clients, the company's exposure could be particularly high.
Potentially the Most Expensive Fire in California History
This wildfire could become the most expensive in California's history. According to JPMorgan Chase's estimate on Thursday, the insurance losses caused by this week's wildfire may exceed $20 billion, and this number could grow if the fire continues to spread. This loss is expected to far surpass the $12.5 billion in insurance losses caused by the 2018 'Camp Fire.' According to Aon, the 'Camp Fire' was previously the most expensive fire in U.S. history.
Moody's Rating also predicts that due to the high value of homes and businesses in the affected areas, the insurance losses from this wildfire will reach several billion dollars.
Among the five fires, the Palisades Fire is the largest. According to California's official statistics, this fire has burned over 17,000 acres of land and destroyed more than 1,000 buildings. The Pacific Palisades area is a wealthy community, and JPMorgan Chase noted that the median home price in this area exceeds $3 million (RM13.4857 million).
In light of potential claims from this fire, insurance companies have requested Southern California Edison to preserve evidence related to the Los Angeles wildfire, according to a document submitted to regulatory authorities.