The fires destroyed more than 16,000 structures and resulted in losses of as much as $164 billion, according to an analysis by economists at the University of California, Los Angeles.
The fires that swept through Los Angeles in January will have deep and long-lasting effects on the state’s already stressed insurance market.
The fires destroyed more than 16,000 structures and resulted in losses of as much as $164 billion, according to an analysis by economists at the University of California, Los Angeles. In February, the state’s leading insurers including State Farm, Travelers and Chubb announced billion-dollar underwriting losses from the fire.
On top of that, California’s badly overexposed state-backed insurer, FAIR, announced in mid-February that it was under-capitalized and that it would be putting an additional $1 billion assessment on the insurance companies doing business in the state.