The Los Angeles fires are shaping up to be one of the most expensive disasters in US history, and due to the global nature of the insurance industry, the costs may be felt in Australia.
The insurance price tag for the Los Angeles fires is estimated to be more than $US20 billion .The disaster has exposed the fragilities of the insurance market, showing more needs to be done to build resilience and mitigate climate risks.California's devastating wildfires have exposed an insurance crisis plaguing many disaster-prone areas around the world, and risk pushing up premiums in Australia.
As a last resort, an increasing number of home-owners had turned to a government-backed Fair Access to Insurance Requirements Plan. "Insurance is basically a big pooling mechanism, so if some of us have losses, then everybody's costs go up a bit to cover all those losses," Professor Jarzabkowski said.The global reinsurance market is where insurers transfer some of their risk to other insurers in exchange for premiums.The reinsurance market covers disasters around the world, and lately it has been stressed.
"In response, they have increased prices and reduced capacity, pushing global reinsurance costs to 20-year highs last year," Ms Pearce said.Professor Jarzabkowski said the disaster could put further pressure on the Australian insurance landscape. Standing out like a beacon on the Malibu coastline is this three-storey mansion. Here's why its owner believes it's still intact.
Fires Wildfires Insurance Climate Change Reinsurance Premiums Cost Of Living Pacific Palidsades
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