Verisk Estimates Industry Insured Losses for the Palisades and Eaton Fires Will Fall Between USD 28 Billion and USD 35 Billion

Core Insights - Verisk estimates that insured industry losses from the Palisades and Eaton fires will range between USD 28 billion and USD 35 billion, including losses to the California Fair Plan [1][2] - The Palisades fire is expected to account for losses between USD 20 billion and USD 25 billion, while the Eaton fire is estimated to cause losses between USD 8 billion and USD 10 billion, primarily affecting residential properties [2][3] Company and Industry Analysis - Verisk is advancing science and risk management to enhance community resilience against catastrophic wildfires, with a focus on data and insights to support mitigation efforts [3] - The areas impacted by the Palisades fire include high-value properties, with policyholders facing significant exposure to luxury goods [3] - The demand surge analysis utilized historical construction cost data for Los Angeles and Santa Barbara counties, indicating that rebuilding efforts will incur substantial costs due to the number of destroyed structures [4] - The loss estimates encompass residential, commercial, and industrial properties, as well as automobiles, factoring in demand surge, debris removal, and insured take-up rates [5] - Verisk has initiated a review of its U.S. Wildfire Model as part of California's Sustainable Insurance Strategy, aiming to enhance insights into natural disaster risks and improve insurance availability [5][6] - The use of catastrophe models in California is expected to provide better risk insights for consumers, insurers, and regulators [6] - Verisk is recognized as a leading data analytics and technology partner for the global insurance industry, focusing on improving operational efficiency and risk management [7]