Reinsurers face billions in California fire claims

Gallagher Re revised its insured losses estimation to $20b-$30b.

Gallagher Re has updated its insured loss estimates for the Southern California wildfires to between $20b and $30b, with reinsurance claims expected to reach mid-to-high single-digit billions. 

The Palisades and Eaton fires in Los Angeles are projected to rank amongst the most expensive wildfires ever recorded for the insurance industry, though Gallagher Re noted the losses remain manageable for reinsurers.

Gallagher Re highlighted extensive damage to high-value properties, including homes valued in the millions, commercial businesses, historical sites, schools, religious buildings, and senior living facilities. Luxury assets such as fine art are also being assessed for potential high-value losses.