AIR Worldwide Estimates Insured Losses from Woolsey Wildfire Will Be At Least USD 2.5 Billion
BOSTON, Nov. 30, 2018 - Catastrophe risk modeling firm AIR Worldwide estimates that industry insured losses from the Woolsey Fire in Southern California will be at least USD 2.5 billion. Note that AIR's estimate of insured losses is based on the assumption of nearly 100% take-up rates. The fact that damage from fire, including wildfire, is included in standard homeowners' policies in California informs that assumption. AIR Worldwide is a Verisk (Nasdaq:VRSK) business.
This vegetation fire ignited on November 8 south of Simi Valley in the southeastern corner of Ventura County and spread quickly due to Santa Ana winds and low humidity, as well as challenging suppression factors including steep terrain, limited access, and extreme fire behavior. Full containment was achieved on November 22. The cause of the Woolsey Fire is still under investigation, according to the final update issued by Los Angeles County Fire Department on November 25. In total, the Woolsey Fire burned through 96,949 acres and 1,643 structures; another 364 structures were damaged.
Total economic losses are expected to be higher than the industry insured loss estimate. Industry insured losses from the Woolsey Fire could be higher than USD 2.5 billion due to uncertainty in the payment of additional living expenses resulting from mandatory evacuations, loss of some individual structures outside of the most affected neighborhoods, as well as widespread but lower levels of loss due to smoke, loss of electricity, and damage from suppression efforts.
AIR's modeled insured loss estimates includes:
• Insured physical damage to property (residential, mobile home, and commercial), both structures and their contents, and auto
• Direct business interruption losses
AIR's modeled insured loss estimates does not include:
• Losses to uninsured properties
• Losses to land
• Losses to infrastructure
• Losses from indirect and contingent business interruption
• Loss adjustment expenses
• Demand surge-the increase in costs of materials, services, and labor due to increased demand following a catastrophic event
About AIR Worldwide
AIR Worldwide (AIR) provides risk modeling solutions that make individuals, businesses, and society more resilient to extreme events. In 1987, AIR Worldwide founded the catastrophe modeling industry and today models the risk from natural catastrophes, terrorism, pandemics, casualty catastrophes, and cyber incidents. Insurance, reinsurance, financial, corporate, and government clients rely on AIR's advanced science, software, and consulting services for catastrophe risk management, insurance-linked securities, longevity modeling, site-specific engineering analyses, and agricultural risk management. AIR Worldwide, a Verisk (Nasdaq:VRSK) business, is headquartered in Boston, with additional offices in North America, Europe, and Asia. For more information, please visit www.air-worldwide.com.