South Korean insurers face $62m from LA wildfire losses

DB Insurance holds 37 active policies in the affected regions.

South Korean insurers are preparing for losses of approximately $61.8m due to the ongoing Los Angeles (LA) wildfire, with DB Insurance and Korean Re bearing the brunt, the Korea Herald reported.

DB Insurance is the most exposed, holding 37 active policies in the affected regions, including 34 home insurance contracts in Altadena and three small business insurance contracts in Palisades, the hardest-hit areas. 

The company estimates losses between $35m (KRW50b) and $42m (KRW60b), which “is within the company’s capacity,” a DB Insurance official stated.

Korean Re, a local reinsurance firm, is projected to face smaller losses between $10m (KRW15b) and $21m (KRW30b). 

Other South Korean insurers with operations in LA, including Hyundai Marine & Fire Insurance and Samsung Fire & Marine Insurance, have not reported wildfire-related claims.  

The wildfire in LA has destroyed over 12,000 homes and structures. Industry observers note that the final cost estimates will depend on the fires’ containment and damage assessments in the coming weeks.

($1.00 = KRW1,435.42)