Forecast economic losses for California wildfires were in excess of $1.5 billion during September, with preliminarily insured losses estimated at more than $925 million, according to Aon Benfield’s Global Catastrophe Report.
The report reveals that several wildfires affected California during September, including the Valley Fire, which occurred northwest of San Francisco. It was the third-most damaging wildfire in state history, killing four people and destroying 1,958 homes and other structures.
The Butte Fire, which occurred southeast of Sacramento and was the seventh-most damaging wildfire in state history, killed two people and caused total estimated economic losses of at $450 million, with insurance losses expected to be above $225 million.
With peak US wildfire season in California having started in late September and lasting through early November, wildfires in 2015 have already caused more damage and financial loss in the US than in any other year since 2007.
Adam Podlaha, head of impact forecasting at Aon Benfield, commented: “The severity of the September wildfires in California serves as a reminder of how costly the peril can be for the insurance industry.”
“With insurers facing more than $1 billion in claims payouts for the Valley and Butte fires alone, it makes it the costliest year for the peril since 2007. The peak of the California wildfire season is just beginning, and impact forecasting remains well suited to help our clients assess their risks given our brushfire model for the region.”
