With wildfires becoming a more recurring peril for the California property insurance market, alternative capital may be available to provide coverage, including through multiple-peril alternative reinsurance capital instruments, however “pricing is likely to remain a sticking point” according to analysts at Morningstar DBRS.
In a new report, Morningstar DBRS has revealed that the on-going wildfires in the Los Angeles area have caused unprecedented property damage, with insured losses potentially surpassing $30 billion, leading to a negative but manageable impact on insurers’ credit profiles.
Broking group BMS recently said that it expects the insurance and reinsurance market losses from the LA region of California wildfires will likely exceed $25 billion, while analysts at KBW have analysed what an industry loss of up to $40 billion might mean for the market.
FULL ORIGINAL PUBLICATION HERE