Insured losses from Los Angeles fires could exceed $20bn, surpassing 2018's Camp Fire devastation
The wildfires devastating the Los Angeles area this week may result in the highest insured losses from a single blaze in US history, as reported by CNBC.
According to estimates from JPMorgan published on Thursday, insured losses could exceed US$20bn.
This projection far surpasses the US$12.5bn in damages from the 2018 Camp Fire, which was previously the costliest wildfire in US history, based on data from Aon.
Five wildfires, driven by dry conditions and strong winds, have consumed over 29,000 acres since Tuesday, as reported by Cal Fire.
Among these, the Palisades Fire is the largest, burning through more than 17,000 acres and destroying over 1,000 structures.
The fires remain uncontained, with the LA County sheriff confirming that approximately 180,000 residents are under evacuation orders. The death toll has not yet been determined.
The Palisades Fire has significantly affected the affluent Pacific Palisades neighbourhood, where the median home price exceeds US$3m, according to JPMorgan.
The economic impact of the wildfires is also climbing, with losses estimated at nearly US$50bn as of Wednesday, doubling earlier projections.
AccuWeather estimates that the total economic damage could rise to US$57bn.
Historical data underscores the growing financial toll of wildfires across the US.
The 2018 Camp Fire remains the most expensive wildfire to date, with US$12.5bn in insured losses, followed by the Tubbs Fire of 2017 at US$11.1bn. Other major wildfires include the Woolsey Fire of 2018 (US$5.3bn) and the Lahaina/Maui Fires of 2023 (US$4.4bn).
While California accounts for most of these costly fires, the Lahaina/Maui Fires are notable as the highest-cost wildfire outside California.
JPMorgan analyst Jimmy Bhullar noted in a research report that the fires’ ongoing spread suggests estimates of both economic and insured losses are likely to increase further.
