Fire

Contents


    Executive Summary

    Fire has been a constant concern with damage from residential fires, commercial fires, and wildfires creating a large category of insurable risks. However, in recent years and in the midst of record heatwaves across the Northern Hemisphere, the occurrence of devastating wildfires has increased and swept through many regions including the Western United States, Europe, Siberia, Australia, and Greece. Scientists assert that the increase in fires is attributable to the effects of climate change. Climate change has made and will ultimately continue to make fires larger, longer lasting, and more destructive. The higher temperatures, relentless droughts, and elevated winds exacerbated by climate change leave fires burning longer, spreading faster, and covering a larger surface area. According to the National Interagency Fire Center, the extent of area burned by wildfires each year has increased since the 1980s. Of the 10 years with the largest acreage burned, all have occurred since 2004, including peak years in 2015 to 2020.

    Fire damage may invoke a variety of types of coverage including homeowner’s insurance, renter’s insurance, standard fire insurance, climate risk insurance, and worker’s compensation. Unlike other insured risks, a single fire can easily become a neighborhood-wide event, capable of eviscerating entire regions. Fire damage is often indiscriminate and widespread. Fire has begun to mimic that of flooding disasters along the nation’s coasts and rivers; private insurers abandoned the flood insurance market long ago by handing off the costly burden to the federal government and the National Flood Insurance Program. Similarly, with fires occurring more frequently and damages becoming more costly, the question of whether private insurers can afford to continue insuring fire risk is now more pressing than ever. Recent trends show some insurers scaling back their coverage in fire-prone areas or significantly raising premiums, especially in California.

    Government interventions are becoming more critical, with initiatives like the Wildfire Disaster Funding Act and state-level actions aiming to address the growing risks and insurance gaps. As wildfires increasingly resemble other catastrophic natural disasters, the role of federal and state governments in providing support and creating resilient communities will be essential in the ongoing challenge of insuring fire risks spurred by climate change.

    Background

    Wildfires, also known as forest or bushfires, are uncontrolled fires that spread rapidly through vegetation. Fire is an important process affecting every ecological system around the world. It serves as a dual agent that can spark renewal and change or cause death and destruction. The positive effects of fire include stimulating growth and maintaining ecological balance in certain ecosystems. For example, forest fires raze dead trees and decaying plant matter, turning them into nutrients that help fertilize the soil and regrow healthy vegetation. Historically, wildfires have occurred naturally due to lighting strikes or volcanic eruptions. However, human activities such as land clearing, agricultural practices, and urban expansion have amplified the frequency and intensity of wildfires. Additionally, climate change has compounded these effects by contributing to hotter temperatures, prolonged droughts, and altered weather patterns, which further increase the likelihood and severity of wildfire events. The negative effects of fire include physical property damage, smoke inhalation, atmospheric pollution, and water contamination. Fires release carbon dioxide and other greenhouse gases that contribute to global warming into the atmosphere. Additionally, other detrimental effects include soil erosion, nutrient depletion, and loss of wildlife.

    Climate Change
    Climate change refers to long-term shifts in the statistical distribution of weather patterns, with recent evidence showing accelerated climate warming driven by human activity. Approximately 97% of scientists agree that global warming, primarily caused by the emission of heat-trapping greenhouse cases such as carbon dioxide and methane, is a direct result of human activities. The effects of global climate change include increased frequency and severity of extreme weather events, more frequent and intense wildfires, and prolonged drought periods. These changes directly elevate fire risk by creating conditions that are more conducive to the ignition and spread of wildfire. In recent years, climate change has consistently been identified as a top threat to the insurance industry. Furthermore, a 2024 Swiss Re report indicated that global insured losses from natural catastrophes in 2023 exceeded $100B for the fourth consecutive year.
    To learn more about the effects of Climate Change, please refer to the Climate Change Insurance Risks Database.

    Wildfires
    The term “wildfire” refers to any unplanned fires that burn in forests or other wildlands. Wildfires are powerful forces of nature, possessing duality of both creation and destruction. According to the National Park Service, human-caused wildfires account for over 80 percent of all yearly wildfires in the United States. However, not all fires are bad for the environment. For example, in Ponderosa Pine of the Pacific Northwest, low-intensity ground fires naturally occur every five to twenty-five years as a necessary means to raze dead, woody shrubs and release soil nutrients. In a similar manner, fire-management experts also use prescribed fires, or controlled fires, to help keep ecosystems healthy. Prescribed fires help reduce the risk of catastrophic damage by wildfire by:
    • Reducing excessive amounts of brush and dead vegetation;
    • Encouraging new growth of native vegetation; and
    • Maintaining the many plant and animal species whose habitats depend on periodic fire.

    United States Wildfires
    The United States leads the rest of the world in number of wildfires and millions of dollars in damages. It is closely followed by Australia, Canada, Russia, Greece, and Spain. In the U.S., states most affected by wildfires include California, Alaska, Georgia, Texas, Oregon, Washington, and Arizona. Out of all of these, California has experienced some of the harshest and most devastating wildfire seasons on record.
    The climate in California is dry, windy, and often marked by hot weather that lasts from the beginning of spring through late Autumn. This combination of conditions has the capacity to produce moderate to devastating wildfires. Once a fire sparks, it is often made worse and carried by strong, dry winds; these include “Diablo” winds in the North and “Santa Ana” winds in the south. Wildfires in California are growing increasingly dangerous, and their devastating results may be exacerbated by the effects of climate change. These effects include increased temperature, longer periods of drought, more forceful storms, and elevated wind patterns. This combination can make it more difficult for firefighters to control the fire and contain its spread.
    Recent years have seen devastating wildfires in California, with records of increasing frequency, intensity, and destruction. The 2020 wildfire season was particularly severe, burning over 4.2 million acres, marking the largest annual total in the state's history. These fires resulted in 33 deaths and destroyed more than 10,000 structures, with damages estimated at nearly $20 billion. 2021 was also acutely devastating with wildfires burning more than 2.5 million acres, causing more fatalities and incurring substantial financial losses. California wildfire seasons have worsened, and the cumulative, overall cost of these fires has resulted in an insurance crisis in California wildfire zones.

    Australia Wildfires
    The 2023-24 Australian bushfire season has been of the most devastating on record. The fires have burned an unprecedented 84 million hectares, primarily in the northern parts of the country, making it vastly larger than what became known as the Black Summer fires of 2019-20. The season began with a series of uncontrolled fires in October 2023, exacerbated by persistent heatwaves and prolonged drought conditions. By January 2024, fires in the southeast had reached their peak, burning an estimated 52 million acres, destroying over 6,500 buildings, and resulting in the deaths of at least 42 people. The fires have also led to catastrophic loss of wildlife, including many endangered species whose habitats were destroyed. This loss of biodiversity underscores the importance of preserving and restoring ecosystems to protect wildlife from future fires. In addition to wildlife losses, the fires have caused extensive damage to the environment, further exacerbating the challenges faced by conservation efforts across the region.

    Insurance claims have surged significantly due to widespread damage. By December 2023, insurers were actively educating vulnerable communities and employing risk-based advice models. Claims for fire-related damages have been extensive, and some insurers have implemented temporary embargoes on issuing new policies in high-risk areas to manage the sudden influx of claims. Insured losses from the current bushfire season are anticipated to exceed the $1.6 billion in losses recorded during the 2022-23 season.

    Injuries and Damages

    Wildfires
    While not all wildfires are necessarily bad, in recent years, they have been especially destructive. In the past decade, wildfires across the globe have burned longer, destroyed more surface area, and caused more in insured damages than other years on record. Most scientists agree that climate change and other human activities are to blame because severe heat and drought fuel wildfires. Though millions of acres burn every year, climate change is making these fires even worse. Not only is the average wildfire season three and a half months longer than it once was, but the number of annual fires in the West has tripled, burning six times as many acres of land. As a result, insurers are pulling coverage from high-risk areas and leaving home and business owners uninsured. A recent analysis from the First Street Foundation found that about 35.6 million properties – about one-quarter of all U.S. real estate – face increasing insurance prices and reduced coverage due to high climate risks.

    Residential and Commercial Fires
    Over the past century, great improvements have been made in constructing fire-retardant buildings and improving fire-suppression techniques. As a result, the incidence of fire has been reduced overall. Fires in structures not related to wildfires caused $18 billion in property damage in 2022.
    Structural fires in the United States were predominantly caused by the following:
    • Smoking
    • Arson
    • Electrical malfunction
    • Fireworks
    • Cooking
    • Open flames
    • Appliances
    • Christmas trees
    Furthermore, the National Fire Protection Association says that peak days for structural fires in the United States include Thanksgiving Day, Christmas Day, and the Fourth of July. In addition to the reasons listed above, the highly flammable effects of polyethylene core cladding panels have led to devastating fires including The Grenfell Tower Fire, The Dubai Skyline Fire, and various others in the United States and worldwide. To learn more about the effects of polyethylene panels, please refer to Combustible Panels Insurance Risks Database.

    Wildfire Funding
    In recent years, wildfire funding in the United States has seen significant increases due to the escalating severity of fire seasons. For fiscal year 2024, Congress appropriated a total of $9.32 billion in discretionary funds for the U.S. Forest Service (USFS). This total comprises $6.07 billion in regular enacted funding, an additional $2.30 billion designated specifically for wildfire adjustments, and $945.2 million in supplementary appropriations, marking a substantial rise from previous years. This funding includes support for wildfire suppression efforts, forest restoration, and community resilience programs. Additionally, the Bipartisan Infrastructure Law, passed in 2021, provided $5 billion over five years for wildfire prevention and preparedness projects, aiming to enhance forest health and reduce fire risks. These investments are crucial as the frequency and intensity of wildfires continue to challenge communities and natural landscapes across the country.

    California Insurance Crisis
    Recent developments have further complicated the insurance landscape in California, exacerbating issues from earlier wildfire seasons. The 2020 and 2021 wildfire seasons were notably severe, with extensive damage leading to significant insurance claims. Insurers continued to face substantial financial losses, prompting more drastic measures to mitigate risk exposure. In response, insurers have sought to minimize exposure to wildfire risk by refusing to renew home policies in high-risk areas. According to the U.S. Forest Service, roughly 5 million California households are located in the wildland urban interface where wildfires are most likely to occur. By January 2020, California insurers had declined 350,000 renewals over a five-year period, leaving homeowners with a complete lapse in coverage and total exclusion from participating in the voluntary insurance market. Furthermore, as of May 2024, seven of the 12 largest home insurance companies in California have either completely paused or drastically limited the number of new policies they are writing.

    Insurers argue that the industry was built only to handle discrete incidents of damage like geographically isolated incidents affecting only a small number of people. Fire insurance is intended to cover a single fire here and a home razed there. However, widespread blazes that destroy entire regions and neighborhoods are not considered to be a viable, insurable risk. As climate change exacerbates the effects of wildfires in California, and the fires become more costly, Forbes points out that the insurance “industry’ tradition calculus, which has allowed for affordable coverage of manageable risks, becomes obsolete”.

    In California, the lack of manageable fire risk has become evident by increased insurance premiums across the state. In 2016, the average annual home insurance premium was around $1,000. But by 2024, annual policies in some fire-prone areas have reached or surpassed $1,800 in many areas, with significant regional variation. Even California’s backstop wildfire insurance program (The FAIR Plan) quotes a fire-specific policy on a similar home at $3,200 annually. Insuring disasters can be more expensive and difficult than insuring other kinds of risks. As long as the threat of fire persists, premiums will continue to rise to accurately reflect the risk; and that risk puts homeowners needing insurance in a tricky bind. Ultimately, as California’s wildfires demonstrate, the cost of insuring against some disasters is going to be more than the free market can bear; rising insurance costs will make living in some areas of California entirely impracticable. Even if the government chooses to subsidize policies, the cost of insuring against fire disasters may be passed onto taxpayers elsewhere and generate substantial political pressure against the shifting of such a risk.

    Legislation and Regulation

    The Bipartisan Infrastructure Law (BIL)
    President Joe Biden signed the Bipartisan Infrastructure Law (BIL), formally known as the Infrastructure Investment and Jobs Act, on November 15, 2021. The $1.2 trillion legislation aims to modernize various sectors, including transportation, water, broadband, and energy systems. It also addresses climate resilience, allocating substantial funds for mitigating the impacts of climate change, including wildfire prevention and response. The law represents a historic investment in wildland fire management, providing $5 billion over five years. This funding aims to bolster federal efforts in reducing wildfire risks, preparing for and responding to harmful wildfires, and supporting post-fire recovery efforts. The U.S. Department of Agriculture (USDA) Forest Service will receive an additional $3.5 billion, while the Department of the Interior will receive approximately $1.5 billion. Key initiatives under BIL include improving ecosystem health, expanding burned area restoration activities, enhancing firefighter compensation and benefits, and advancing the use of technology and scientific research to detect and manage wildfires effectively. Additionally, the BIL mandated the creation of the Wildland Fire Mitigation and Management Commission, which released its second annual “On Fire” report in September 2023. The report contains recommendations for addressing the escalating wildfire crisis, emphasizing the need for innovative solutions, stronger collaboration across jurisdictions, and proactive risk mitigation.

    California Wildfire Safety and Recovery Act (Senate Bill 824)
    On September 21, 2018, the Governor of California signed Senate Bill 824 into law. Authored by Former State Senator Ricardo Lara, who is now the State’s Insurance Commissioner, the bill prohibits insurers from canceling or refusing to renew a policy of residential property insurance for one year after a declaration of a state of emergency based on “the fact that the insured structure is located in an area in which a wildfire has occurred, with respect to an insured property located within or adjacent to the fire perimeter.” The law gives the Insurance Commissioner the power to require reports from insurers concerning risks and solvency and imposes civil penalties for failure to submit these reports.

    The bill was enacted in response to the following findings of the State:
    a) Insurance losses due to wildfires are on the rise in California.
    b) The risk of catastrophic wildfires is increasing due to global climate change.
    c) In order to ensure a vibrant and robust insurer marketplace relating to fire risk, it is necessary for the Insurance Commissioner to collect data on fire loss experience from insurers writing residential property insurance, including the Fair Access to Insurance Requirements (FAIR) Plan, and to issue a report summarizing findings from that data collection.

    In December 2019, Insurance Commissioner Ricardo Lara issued a mandatory one-year moratorium on insurance companies non-renewing policyholders pursuant to the authority granted to him by the Act. This was the first time that the California Department of Insurance invoked the law, and the moratorium covers 800,000 homes in ZIP codes adjacent to recent wildfire disasters under SB 824.

    Liability and Insurance

    California FAIR Plan Insurance Association
    The FAIR Plan insurance association is California’s backstop wildfire insurance program. It was initiated by insurers in 1968, after the decade brought brush fires and riots throughout the state. The California Fair Access to Insurance Requirements (FAIR) Plan is an insurance pool established to ensure the availability of property insurance for people who, due to conditions beyond their control, have been unable to obtain insurance in the voluntary market. FAIR Plan insurance can be viewed as the insurer of last resort and can be used after the insured has demonstrated a “good faith effort” to obtain coverage in the voluntary market and provided certain submission guidelines are met. The Plan only provides coverage for losses caused by fire, lightning, internal explosion, and smoke.

    Homeowners’ Insurance
    Homeowners insurance is a form of property insurance that covers losses and damages to an individual’s residence, along with personal property and other assets in the home. It also provides liability coverage against accidents occurring in the home or on the property. When it comes to fire damage, homeowners’ insurance will typically cover the cost of repairs to the home, unattached structures on the property, and personal belongings. However, each policy has a liability limit, and such insurance may not cover all types of fire damage. Typically, homeowners’ insurance will not cover damages resulting from an intentionally set fire or fire damage caused by an act of war.

    Renters Insurance
    Renters insurance generally covers fire damage in the same way that a homeowner’s policy does. Though each individual policy is different, renters’ insurance typically covers the loss of personal property and fire liability. Some, but not all, policies may also contain a “loss of use” line of coverage. Such coverage is designed for situations where a fire has made the dwelling uninhabitable and may cover the cost of a hotel while the dwelling is being repaired.

    Fire Insurance
    Standard fire insurance is a type of supplemental insurance that covers damage and losses directly caused by fire. This fire policy is purchased in addition to homeowners or property insurance and helps to cover the costs of repair, replacement, or reconstruction of the property above the coverage limit set by the property or homeowners policy; homeowners insurance usually covers fire damage, but losses may be capped at a rate that is less than the cost of losses actually sustained, thus necessitating a separate fire insurance policy. A fire insurance policy includes extra coverage against smoke or water damage due to a fire. This insurance will likely cover a policyholder against fire losses resulting from various sources including electric malfunction, gas explosion, lightning, and natural disasters (and also bursting pipes or overflowing water tanks in response to such fires). Most fire insurance policies contain exclusions against damage caused by war and nuclear risks.

    Climate Risk Insurance
    As climate change increases extreme weather events and the frequency of natural disasters, it pushes an estimated 26 million people into poverty each year in addition to increasing economic inequality. In 2015, G7 Countries (Group of Seven: Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States) agreed to target climate risk insurance for 400 million poor and economically vulnerable people in developing countries by 2020. This agreement developed into the InsuResilience Global Partnership (IGP) and raised $715 million by 2018. As of 2024, the IGP has continued to expand its efforts, securing additional funding and expanding its reach to support over 500 million people. The central objective of this partnership is to enable more timely disaster response using climate and disaster risk finance and insurance solutions, particularly as wildfires become increasingly devastating in countries with hot and dry climates. Recent initiatives have focused on integrating innovative insurance solutions and leveraging technology to improve disaster preparedness and resilience in the face of growing climate risks.

    Workers’ Compensation
    Firefighters filing workers compensation claims do not face the typical hurdles that most civilian employees do. Generally, an employee is required to demonstrate a strong link of causation between their work and the injury sustained. Absent such a causal link, many employees struggle to receive workers’ compensation benefits. However, because the job of a firefighter is inherently dangerous, firefighters filing workers’ compensation claims receive a presumption of causation. This is because years of research have demonstrated that there is a strong link between work as a firefighter and certain illnesses including various cancers like lymphoma and throat cancer. In addition, firefighters can file a claim for any injury occurring on the job and workers’ compensation benefits can be used to pay for medical bills, lost wages, and temporary or permanent disability.

    Litigation

    California FAIR Plan Association v. Garnes
    In 2018, Marlene Garnes’ home in Richmond, California was badly damaged in a fire. She filed a claim under her FAIR fire insurance policy with the California Fair Plan Association, seeking $320,549, less depreciation, for the cost of repairing her home; Garnes’ policy had a limit of $425,000. The Association responded that her policy entitled her to no more than the $75,000 fair market value of her house. FAIR filed suit, seeking a declaration of Garnes’ rights under her policy. The trial court entered a judgment in favor of FAIR, finding that the association was only liable for the $75,000 market value of Garnes’ homes. On appeal, The Court reversed this decision, holding that FAIR was required to compensate Marlene Garnes for the actual cost of repairing her home, less depreciation.

    The California Supreme Court affirmed the decision of the First Appellate District, holding that an insured’s measure of damages is the actual cost of repairing a home; and the insurance company must pay to repair the home even if the cost of repair exceeds the home’s fair market value. The judgment is seen as a major win for homeowners and an equal loss for insurers who can no longer restrict the policy holder’s recovery to the market value of the home.

    California FAIR Plan Association v. Lara
    In December 2019, the California FAIR Plan Association filed a lawsuit against Ricardo Lara, in his official capacity as the Insurance Commissioner of the State of California. The lawsuit comes on the heels of Department of Insurance’s mandate that the FAIR association offers comprehensive homeowners’ insurance, adding other perils like water damage, theft, and personal liability to existing fire coverage. The mandate comes as the result of a particularly heinous 2018 wildfire season which resulted in insurance carriers reducing coverage; the Associated Press reported that private insurers dropped coverage for more than 350,000 policyholders in wildfire-prone areas since 2015. Commissioner Lara said that he hoped the order would save policyholders from the burden of having to purchase multiple insurance policies. However, the FAIR Association claims that the mandate is illegal because it interferes with FAIR’s plan to encourage “maximum use” of the private insurance market. The case is currently pending.

    Fadeeff v. State Farm Insurance Co.
    The Fadeeff family’s home was badly smoke damaged, but not destroyed, by the Hidden Valley Fire that burned more than 75,000 acres of land across Northern California in 2015. State Farm paid the family $50,000 after its initial adjuster reported smoke and soot on the interior walls, ceilings, carpeting, exterior, and deck; the Fadeeffs hired a licensed insurance adjuster and submitted supplemental claims for additional repairs, including interior smoke damage and exterior paint damage caused by pressure washing, totaling $75,000. State Farm then used an unlicensed, independent adjuster to investigate the supplemental claims which were then denied. The Fadeeffs filed a bad faith lawsuit against State Farm and a Mendocino County Superior Judge granted State Farm’s motion for summary judgment under the “genuine dispute” doctrine.
    Under the genuine dispute doctrine, an insurer denying payment of policy benefits is insulated from bad faith claims so long as there is a “genuine dispute” about the existence of coverage, even though the insurer might be liable for breach of contract. The Fadeeffs appealed the decision, claiming that it demonstrates that the genuine dispute doctrine is “wildly overused” by insurers. On June 8, 2020, the First District Court of Appeals, in a blow to insurers, found that expert testimony does not automatically insulate an insurer from bad faith claims and that questions of whether and expert’s inspection was biased is a question better left to the jury. The impact of this Court’s decision will continue to be revealed in coming years of insurance litigation.

    PG&E Lawsuit
    As of 2024, wildfire litigation remains a significant and ongoing issue for Pacific Gas and Electric (PG&E). PG&E, which filed for Chapter 11 bankruptcy in January 2019, has faced substantial legal and financial challenges due to its role in numerous catastrophic wildfires in California. Filing for bankruptcy was a strategic move to resolve extensive claims related to wildfire damages and to address its financial instability. As part of its bankruptcy proceedings, PG&E proposed a reorganization plan that included a $13.5 billion settlement to compensate wildfire victims and to bolster fire prevention measures.

    On September 26, 2019, the California Public Utilities Commissions (CPCU) opened a formal proceeding to evaluate the implications of PG&E’s proposed reorganization plan, focusing on ratepayer impacts and ensuring alignment with California’s climate goals. By July 1, 2020, PG&E successfully emerged from bankruptcy, having received CPCU approval for its reorganization plan with conditions aimed at improving its safety practices and financial health. Despite emerging from bankruptcy, PG&E’s legal troubles persist. Throughout 2023 and 2024, PG&E has continued to face litigation related to its involvement in wildfires, with ongoing lawsuits from victims and regulatory investigations into its safety practices.

    Hawaiian Electric
    Hawaiian Electric is facing substantial legal challenges related to its involvement in the catastrophic wildfires that struck Maui, particularly the devastating Lahaina fire in August 2023. Lawsuits filed against the company alleged that its equipment and maintenance practices contributed to the fires’ ignition and severity. Plaintiffs, including local residents, business owners, and government entities, contended that Hawaiian Electric’s failure to properly maintain its power lines and adhere to safety protocols exacerbated the damage. In March 2024, a preliminary ruling was made in one of the high-profile cases. A judge found sufficient evidence to allow plaintiffs to continue pursuing extensive damages for property loss, business interruptions, and environmental harm.

    Amidst these legal battles, Hawaiian Electric has been engaged in negotiations to settle the wildfire claims and avoid a fate similar to PG&E’s bankruptcy. Reports indicate that the company is nearing a settlement agreement aimed at addressing the financial and legal fallout from the fires. The proposed settlement is designed to provide compensation to affected parties while avoiding a lengthy and costly bankruptcy process like PG&E’s.

    Future Outlook

    The future outlook for wildfires is increasingly concerning due to climate change, urban development, and forest management practices. Rising global temperatures and prolonged droughts are creating more flammable environments, leading to more intense and widespread wildfires. Extreme weather events, such as heatwaves and high winds, further escalate the risk. Additionally, urban expansion into fire-prone areas, known as the wildland-urban interface, amplifies potential property damage and claims, making it crucial for insurers to adapt their risk assessment models and pricing strategies to accurately reflect these evolving threats. Improved predictive models and early-warning systems will be essential for insurers to manage exposure and mitigate losses.

    To address these challenges, the insurance industry is increasingly adopting advanced technologies and policy strategies. Satellite monitoring, drone surveillance, and artificial intelligence are enhancing wildfire detection and risk assessment, helping insurers better predict and manage potential losses. AI is particularly valuable in forecasting fire behavior and optimizing claims processing. Additionally, insurers are focusing on climate adaptation strategies, such as promoting defensible spaces and sustainable land-use practices, to reduce risk. Collaboration with federal, state, and local agencies, along with increased community engagement, will be critical for developing effective risk management and mitigation strategies in response to the growing threat of wildfires.

    In the News

    2024

    • Dozens of CT brush fires being monitored as historic drought turns state into 'tinderbox' - Jessica Bravo, CT Insider (10/29/2024)
      Officials said dozens of brush fires across Connecticut have the chance of re-igniting even though they may be “contained or controlled.” In the past week, 40 fires have been contained and about 12 of those were more than an acre in size, according to data from the state Department of Energy and Environmental Protection. Causes of the fires varied, from things such as “smoking” to burning debris.
    • Deadly Maui fire erupted from earlier blaze believed to have been extinguished, investigation finds - Rebecca Boone, Jennifer Sinco Kelleher, and Alanna Durkin Richer, The Associated Press (10/02/2024)
      The wildfire that killed at least 102 people on Maui last year erupted from an earlier brushfire, sparked by downed power lines, that firefighters believed they had extinguished, officials confirmed Wednesday as they presented their findings on the cause. The Aug. 8, 2023, blaze — the deadliest U.S. wildfire in more than a century — emerged in the afternoon in the same area as the blaze that began earlier that morning. Driven by strong, erratic winds, the fire raced through the historic town of Lahaina, destroying thousands of buildings, overcoming people trapped in their cars and forcing some residents to flee into the ocean.
    • California to explore first-in-nation public wildfire catastrophe model - Camille von Kaenel, E&E News (09/18/2024)
      California’s Insurance Department and California State Polytechnic University, Humboldt, are teaming up to research how to create what would be the nation’s first public wildfire catastrophe model to identify homes and neighborhoods at highest risk. The announcement Tuesday comes as state Insurance Commissioner Ricardo Lara advances a suite of new regulations aimed at enticing property insurers back to the state after record losses to wildfire. He’s faced criticism by consumer advocates over allowing insurers to keep their models secret.
    • Maui judge agrees to ask state Supreme Court about barriers to $4B wildfire settlement - Jennifer Sinco Kelleher, The Associated Press (08/30/2024)
      The Hawaii Supreme Court will be asked to weigh in on an issue that threatens to thwart a $4 billion settlement in last year’s devastating Maui wildfires. Judge Peter Cahill on Maui agreed Friday to ask the state high court questions about how insurance companies can go about recouping money paid to policyholders. Insurance companies that have paid out more than $2 billion in claims want to bring independent legal action against the defendants blamed for causing the deadly tragedy. It’s a common process in the insurance industry known as subrogation.
    • Hone weakens to tropical storm and sweeps past Hawaii, dumping enough rain to ease wildfire fears - Jennifer Sinco Kelleher and Julie Walker, The Associated Press (08/26/2024)
      Hone passed south of Hawaii and weakened from a hurricane to a tropical storm on Sunday, dumping so much rain that the National Weather Service called off its red flag warnings that strong winds could lead to wildfires on the drier sides of the islands.
    • Canada looks to centuries-old indigenous use of fire to combat out-of-control wildfires - Keith Matheny, USA Today (08/25/2024)
      As Canada deals with the same wildfire problems plaguing the western U.S. – fires of increasing intensity burning larger areas as the climate and forests change – Canadian governments are spending hundreds of millions of dollars on more and better firefighting equipment, increased personnel, fire-tracking satellites and improving community readiness.
    • Nevada wildfire causes rail and power outages, but crews halt flames’ progress - The Associated Press (08/20/2024)
      A wildfire has forced the suspension of rail service in northern Nevada and left about several thousand rural residents without power. But fire officials said Tuesday that night crews had halted the progress of the flames, which charred more than a square mile (2.6 square kilometers) of terrain and temporarily shut down part of Interstate 80.
    • Firefighters significantly tame California’s fourth-largest wildfire on record - The Associated Press (08/19/2024)
      California’s largest wildfire this year has been significantly tamed as the state’s initially fierce fire season has, at least temporarily, fallen into a relative calm. The Park Fire was 53% contained Monday after scorching nearly 671 square miles (1,738 square kilometers) in several northern counties, destroying 637 structures and damaging 49 as it became the state’s fourth-largest wildfire on record.
    • Maui judge’s ruling bars insurers from going after defendants who agreed to $4B wildfire settlement - Jennifer Sinco Kelleher, The Associated Press (08/14/2024)
      A Maui judge’s ruling Tuesday resolves a critical roadblock to finalizing a $4 billion wildfire settlement: Insurance companies who have paid out more than $2 billion in claims can seek reimbursement only from the settlement amount defendants, who victims blame for causing the deadly tragedy, have agreed to pay.
    • Fast-moving Southern California wildfire torches hillside homes, forcing evacuations - The Associated Press (08/06/2024)
      A fast-moving wildfire that swept into a Southern California hillside community this week destroyed five homes and damaged three others, authorities said Tuesday. The flames erupted Monday afternoon and chased residents from the neighborhood in San Bernardino, about 60 miles (97 kilometers) east of Los Angeles.
    • Amid wildfires, Nevada faces ‘extremely concerning’ insurance crisis - Alan Halaly, Las Vegas Review-Journal (08/02/2024)
      An alarming number of home insurance carriers are denying new applications in Nevada — a clear indicator that the Silver State is facing a growing crisis as climate change elevates wildfire risk, state officials said. In an interim legislative hearing on commerce and labor this week, Scott Kipper, Nevada’s insurance commissioner, said there was an increase from 264 to 481 policies that were canceled or refused renewal because of wildfire risk from 2022 to 2023. That marks a more than 80 percent increase.
    • Hawaii Gov. Josh Green tells AP a $4 billion settlement for 2023 Maui wildfire could come next week - Audrey McAvoy, The Associated Press (07/31/2024)
      The parties involved in Lahaina wildfire lawsuits against the state of Hawaii, Maui County and utilities are close to a global settlement of claims that will be worth a little over $4 billion, Gov. Josh Green told The Associated Press on Wednesday. Green said he’s hoping to finalize the details in coming days, perhaps as soon as Aug. 6, which would be two days before the one-year anniversary of the fire that killed 102 people and wiped out historic Lahaina.
    • Over 10,000 claims due to Maui fires top $3.29B in losses and damage - Allison Shaefers, Honolulu Star-Adviser (07/30/2024)
      A breakdown of insurance data for the Maui wildfires shows more than 10,033 claims representing an estimated $3.29 billion-plus in losses.
    • Insurers could see losses up to $506 million from Jasper wildfires - Business Insurance (07/29/2024)
      DBRS Morningstar said that insurers could be on the hook for up to $700 million Canadian ($506 million in claims for the wildfires affecting Jasper, Canada, making it one of the most expensive wildfire disasters in the country’s history, MSN reported citing the Canadian Press. The Jasper National Park is one of the most popular tourism destinations in Canada, which may cause insurers to face additional business claims for commercial building and business interruption losses.
    • California fire rapidly reaches state's top 10 biggest ever - AFP (07/28/2024)
      A fire raging out of control in northern California has rapidly become among the biggest ever in the western US state, authorities said Saturday. The so-called Park Fire burned more than 350,000 acres (142,000 hectares) as of Saturday evening, making it the seventh-largest ever recorded in California history, the state agency Cal Fire said.
    • Wildfires in California, Utah prompt evacuations after torching homes amid heat wave - Christopher Cann, USA Today (07/22/2024)
      Wildfires ignited over the weekend engulfed hundreds of acres of land in California and Utah, prompting evacuation orders as they torched homes, threatened nearby communities and, in Salt Lake City, burned near the state capitol.
    • 14 attorneys general press FEMA to define heat, wildfire smoke as major disasters - Ysabelle Kempe, Smart Cities Dive (07/19/2024)
      Attorneys general from 13 states and D.C. want extreme heat and wildfire smoke to be explicitly recognized by the federal government as eligible for major disaster declarations. The change would help state and local governments access federal dollars to prepare for and respond to dangerously high temperatures and poor air quality, the attorneys general wrote in a July 16 letter to top officials at the Federal Emergency Management Agency.
    • Maui Fire Victims Sue Insurers To Make Sure They Get Fully Paid In Any Settlement - Stewart Yerton, Honolulu Civil Beat (07/19/2024)
      A group of Maui wildfire victims has sued several of Hawaii’s largest insurance carriers, alleging the insurers are wrongly seeking compensation from a limited litigation settlement fund before the fire victims are fully compensated for their damages.
    • Lightning-caused wildfire in an Arizona forest still uncontained, leads to some evacuation orders - The Associated Press (07/15/2024)
      Several areas in Tonto National Forest are under evacuation orders due to a lightning-caused wildfire that has burned 8.6 square miles (22.2 square kilometers) since last week, authorities said Monday. Officials with the U.S. Forest Service said the Black Fire began Thursday and remains at zero containment.
    • ‘We were not prepared’: Canada fought nightmarish wildfires as smoke became US problem - Keith Matheny, Detroit Free Press (07/12/2024)
      Canada has a wildfire problem — research shows its wildfires are growing in intensity and area burned. Last year, it reached nightmarish proportions — and became America's problem, too. Canada didn't just break its wildfire records in 2023, it obliterated them. Nearly 58,000 square miles of the nation burned — an area about the size of Illinois — in more than 6,500 wildfires coast-to-coast from April to October, according to revised numbers from the Canadian Forest Service.
    • World not ready for climate change-fuelled wildfires: Experts - Linda Givetash, AFP (06/25/2024)
      The world is unprepared for the increasing ferocity of wildfires turbocharged by climate change, scientists say, as blazes from North America to Europe greet the northern hemisphere summer in the hottest year on record.
    • Wildfire near Los Angeles burns over 14K acres, forcing evacuations - Thao Nguyen, USA Today (06/16/2024)
      At least 1,200 people have been evacuated as a wind-driven wildfire quickly spread to over 14,000 acres northwest of Los Angeles, officials said Sunday. The blaze, dubbed the Post Fire, began Saturday afternoon near the Interstate 5 freeway in Gorman, a community about 68 miles northwest of Los Angeles, according to the California Department of Forestry and Fire Protection (Cal Fire). As of Sunday afternoon, the blaze had spread to about 14,625 acres and was 2% contained.
    • 'No network is flawless': Wildfires underscore resiliency challenges for telecoms - Sammy Hudes, The Canadian Press (06/09/2024)
      As wind-driven wildfires broke out on the Hawaiian island of Maui last summer, killing more than 100 people and destroying thousands of buildings, a telecommunications blackout kept many residents in the dark.
    • State Farm Insurance says some CA homeowners may keep their coverage, but there's a catch - abc7 (06/06/2024)
      Some State Farm customers might be able to keep their home insurance after all. According to the San Francisco Chronicle, some homeowners received notice they can keep their coverage -- but the policy cannot include fire damage.
    • PacifiCorp will pay $178M to Oregon wildfire victims in latest settlement over deadly 2020 blazes - Claire Rush, The Associated Press (06/04/2024)
      Pacific Power, part of PacifiCorp, said Monday it has agreed to a $178 million settlement with over 400 Oregon plaintiffs in the latest multimillion-dollar payout related to the deadly 2020 wildfires that ravaged the state. In other cases that have gone to trial over the past year, Oregon juries in multiple verdicts have ordered PacifiCorp to pay hundreds of millions of dollars to victims. Ongoing litigation could leave it on the hook for billions.
    • Oregon wineries and vineyards seek $100 million from PacifiCorp for wildfire smoke damage to grapes - Claire Rush, The Associated Press (05/28/2024)
      Dozens of Oregon wineries and vineyards have sued PacifiCorp over the deadly 2020 wildfires that ravaged the state, alleging that the utility’s decision to not turn off power during the Labor Day windstorm contributed to blazes whose smoke and soot damaged their grapes and reduced their harvest and sales.
    • Canadian wildfire smoke chokes Upper Midwest for second straight year - Todd Richmond, The Associated Press (05/13/2024)
      Smoke from Canadian wildfires has prompted health warnings across the Upper Midwest and Montana for the second year in a row. Fires raging in British Columbia and Alberta have filled the skies with haze over parts of Montana, the Dakotas, Minnesota and Wisconsin on Sunday, lingering into Monday morning.
    • Wildfires destroy 1.7m acres of land in first three months of 2024 – half of last year’s total - Louise Boyle, The Independent (04/10/2024)
      Wildfires across the United States have destroyed more than 1.7 million acres of land in the first three months of 2024, already more than half of last year’s total. Three large, uncontained fires are currently burning in Alabama, Missouri and Florida, according to the National Interagency Fire Center (NIFC), while wildland firefighters have managed to get 23 other large fires under control this week.
    • Climate change helping drive an increase in large wildfires in the US - Dinah Voyles Pulver, USA Today (03/24/2024)
      "Climate change is leading to larger and more severe wildfires in the western United States," the latest National Climate Assessment reported last year. These fires have “significant public health, socioeconomic, and ecological implications for the nation.” Warmer temperatures create the kind of conditions that make fire behaviors more dangerous, the assessment said.
    • PacifiCorp ordered to pay Oregon wildfire victims another $42M. Final bill could reach billions - The Associated Press (03/05/2024)
      A jury in Oregon has ordered PacifiCorp to pay more than $42 million to 10 victims of devastating wildfires on Labor Day 2020 — the latest verdict in litigation that is expected to see the electric utility on the hook for billions in damages. Last June, a jury found PacifiCorp liable for negligently failing to cut power to its 600,000 customers despite warnings from top fire officials. The jury determined it acted negligently and willfully and should have to pay punitive and other damages — a decision that applied to a class including the owners of up to 2,500 properties.
    • Minnesota-based energy company accused of causing Texas' deadly Smokehouse Creek fire in lawsuit - Hojun Choi, The Dallas Morning News (03/04/2024)
      An energy company based in Minnesota is facing blame for the largest wildfire in Texas history and has been sued by a Texas Panhandle resident, court documents showed. In the lawsuit filed Friday, attorneys for Hemphill County resident Melanie McQuiddy say a wooden utility pole located about a mile north of Stinnett, in Hutchinson County, “broke” and fell Feb. 26, “igniting” the Smokehouse Creek wildfire.
    • Hawaii’s governor releases details of $175M fund to compensate Maui wildfire victims - Audrey Mcavoy, The Associated Press (02/27/2024)
      Hawaii Gov. Josh Green said Tuesday that a $175 million fund to compensate families of people killed in the deadliest U.S. wildfire in more than a century will begin accepting applications at the end of the week.
    • US government may sue PacifiCorp, a Warren Buffett utility, for nearly $1B in wildfire costs - Josh Funk, The Associated Press (02/26/2024)
      The U.S. government is threatening to sue PacifiCorp, a unit of Warren Buffett’s Berkshire Hathaway, to recover nearly $1 billion in costs related to the 2020 wildfires in southern Oregon and northern California, though the company is trying to negotiate a settlement.
    • California utility will pay $80M to settle claims its equipment sparked devastating 2017 wildfire - The Associated Press (02/26/2024)
      Southern California Edison will pay $80 million to settle claims on behalf of the U.S. Forest Service connected to a massive wildfire that destroyed more than a thousand homes and other structures in 2017, federal prosecutors said Monday. The utility agreed to the settlement on Friday without admitting wrongdoing or fault in connection with the Thomas fire, the U.S. Attorney’s Office said in a statement.
    • USDA announces $500M to help prevent wildfires in western U.S. - Ehren Wynder, UPI (02/20/2024)
      The U.S. Department of Agriculture on Tuesday announced $500 million will be used to confront the nation's ongoing wildfire crisis. Agriculture Secretary Tom Vilsack said in a release that the $500 million from President Joe Biden's Inflation Reduction Act and Bipartisan Infrastructure Law will expand work on the USDA's Forest Service's Wildlife Strategy, bringing the total investment in the strategy to a historic $2.4 billion.
    • Maui wildfire recovery fund increased to $175M, set for March 1 launch: Hawaiian Electric CEO - Kavya Balaraman, Utility Dive (02/15/2024)
      A recovery fund that will provide victims of the Maui wildfires with compensation, as an alternative to litigation, now amounts to $175 million and is set to be launched on March 1, Scott Seu, president and CEO of Hawaiian Electric’s parent company Hawaiian Electric Industries told analysts during an earnings call Tuesday.
    • Forest fires kill 112 in Chile's worst disaster since 2010 earthquake - Reuters (02/05/2024)
      Firefighters in central Chile on Sunday battled to quell fierce forest fires that have killed 112 people so far and razed entire neighborhoods, while President Gabriel Boric warned the country faces a "tragedy of very great magnitude". Hundreds of people are still missing, authorities say, stoking fears the death toll will keep climbing as more bodies are found on hillsides and houses devastated by the wildfires.
    • US Steel agrees to spend millions to settle lawsuit over air pollution violations after 2018 fire - The Associated Press (01/30/2024)
      U.S. Steel has agreed to settle a lawsuit that accused the Pittsburgh-based company of violating federal clean air laws by operating plants without its desulfurization controls for more than three months, emitting clouds of sulfurous gas into surrounding towns.
    • Hawaii electrical utilities could face more regulation - Andrew Gomes, Hawaii Tribune Herald (01/30/2024)
      Hawaii lawmakers are considering legislation to increase electrical utility regulation pertaining to wildfires in the wake of the Aug. 8 Maui disaster. Several bills have been introduced in the Legislature this year with such intent, including one requiring grid operations that minimize catastrophic wildfire risk, one requiring regulatory approval of wildfire mitigation plans and one helping residential property owners in fire-prone areas reduce wildfire impacts.
    • California utility PG&E agrees to $45M settlement for 2021 Dixie Fire - Sharon Udasin, The Hill (01/26/2024)
      Pacific Gas and Electric Co. (PG&E) will pay $45 million for its involvement in California’s second largest-ever wildfire, state regulators announced Thursday. The settlement pertains to the 2021 Dixie Fire, which began in July 2021 and was kindled after a Douglas fir tree fell and hit energized conductors owned and operated by the utility, according to the California Public Utilities Commission (CPUC).
    • Alaska charter company pays $900k after guide caused wildfire by not properly extinguishing campfire - The Associated Press (01/24/2024)
      An Alaska fishing guide company has paid $900,000 to settle a lawsuit brought by the U.S. government alleging one of its guides started a wildfire in 2019, the U.S. attorney’s office for Alaska said in a statement Wednesday.
    • Canada should be on ‘high alert’ for 2024 after record wildfire season: scientist - The Canadian Press (01/16/2024)
      Canada should be on “high alert” for 2024 wildfires, a scientist with the Canadian Forest Service said Friday, as he offered a sweeping view of last year’s record-shattering season.
    • Wildfire prevention and helping Maui recover from flames top the agenda for Hawaii lawmakers - Audrey Mcavoy, The Associated Press (01/14/2024)
      Hawaii lawmakers are due to convene this week for the first time since the burning of historic Lahaina awakened the state to the deadly and costly threat posed by wildfires in an age of climate change.
    • Xcel Energy faces nearly 300 lawsuits alleging utility company started Marshall fire - Noelle Phillips, The Denver Post (01/12/2024)
      Xcel Energy is facing nearly 300 lawsuits filed by homeowners, local governments and retail giant Target in the wake of the second anniversary of the Marshall fire, and attorneys filing the cases say the legal arguments over liability will be complex because of the deadly wildfire’s two known origin points.

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    “By far and away the most well rounded and useful Cat-focused industry conference out there. Perfect for all levels within the industry. From the conference content, the presenters and the attendees, this conference is a can’t miss for those interested in expanding their knowledge and learning more about cat related insurance and reinsurance modeling topics ” Nick DiMuzio, Everest

    "Fantastic, enriching conference - brilliantly planned and run, illuminating talks and excellent opportunities for networking across multiple areas of catastrophic risk.” Gary Ackerman, University at Albany

    “From a treaty underwriter's point of view, RAA presented relevant topics related to today's macro events. Scientific presentations provided insight that I can incorporate in underwriting and share with my clients.” Eric B. Silberman, Munich Re

    "Great conference with some of the biggest names in the business presenting their work. What more could you ask for?” Ron Nash, Nash Consulting

    “A perfect introduction to the world of reinsurance. Relevant topics, great speakers and the opportunity to network with industry peers makes this a must go event.”
    Tom Barrett, Everest Re

    Demystifying Reinsurance was an excellent tool to clearly understand and break down the basics. Very good class and recommend it for beginners and even as a refresher course for the intermediate student.”
    Chenessia West, TransRe

    “Re Basics is the ideal opportunity whether an industry professional or student of insurance to understand the in and outs of reinsurance while being able to network with persons spread across the whole industry.”
    Darius Zuill, Bermuda Monetary Authority

    “This has been the best reinsurance seminar that I have been to! Whether a reinsurance seasoned vet or new to the field, this is an engaging seminar that addressed specific issues of the reinsurance market.”
    Michelle Thimm, Church Mutual Insurance 

    “Re Underwriting provided a comprehensive and interesting overview of underwriting in the current market with a major (and interesting) focus on trends. Very useful for underwriting and non-underwriting alike.”
    DeVika Bourne, PartnerRe

    “Very informative experience, and a great way to keep up to date on current underwriting events and trends.”
    Steven Whalen, Aspen Re

    “Time well spent in learning the updated underwriting business and networking!”
    Christine Chen,  Everest Re 
    “The panels and presentations were thought provoking and fascinating as numerous topics were covered affecting the industry. I’m leaving the conference with a greater insight of the future market.”
    Brittany de Frias, AXIS Capital 

     

    “RAA Re Finance was the first RAA seminar I attended, and I was thoroughly impressed with the speakers and content. I learned a great deal from the presentations and intend to bring some new ideas back to my company and share with the team!”
    Taylor Robinson, ICW Group

    “Fantastic slate of instructors who thoughtfully walked us through financial reporting and other aspects of reinsurance finance. They used terminology that non finance people (lawyers) could understand. Really great program.”
    Steven Bazil, The Bazil Group

    “If you are in Reinsurance Accounting/Finance, you need to take this course to help you with your job.”
    Frank Borawski, Markel  

    “The speakers were excellent! There is something to be said about a person, and in this case a group of people, who can take time away from their busy schedules and explain to everyone something they feel passionate about in a manner that's understandable. My only complaint is that I wish we had more time with them.”
    Jessica Mieles, Sompo International

    “The RAA ReContracts is the most comprehensive reinsurance contract wording training available in the U.S. market.”
    David Kragseth, Guy Carpenter   

    “The course was very helpful in addressing different viewpoints and important things to consider in contract design and review.”
    Andy Martin, AmericanAg 

    “The RAA contract course was very informative and interesting. It covered a wide range of Reinsurance Contracts Types. In my Reinsurance Career, I have had the opportunity to work on a limited type of contracts, so I learned a lot.”
    Vivian Castro, Arch Insurance Company 

    “The RAA Contracts course provides the opportunity to engage with relevant topics, taught by industry experts, in both seminar and small group environments. The course material and industry experts provide an understanding on a wide range of subjects.” 
    Kevin English, LMRe

    “Participation in Re Claims should be mandatory for all P&C reinsurance underwriters. It’s truly an eye-opener, providing an in-depth look from a claims manager’s perspective on what happens to the business that we underwrite. There are lots of do’s and don’ts to pay attention to. Re Claims answers all the hard questions."  Michael Delacruz, China Re P&C

    “I absolutely love this program. I learned so many new things. Reinsurance from the industry’s top executives, interactive activities, interesting panels, and innovating presentations makes for an intriguing few days. Well worth the time and money.” Chenessia West, TransRe

    “As a reinsurance attorney I find Re Claims highly valuable to stay abreast of emerging issues. Also, being walked through practical case studies is extremely helpful in creating a thorough understanding of how contracts work.” Steven Bazil, The Bazil Group

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