Smoke signals: pricing wildfire risk


Smoke signals: pricing wildfire risk

Terrifying walls of flames and the widespread devastation they leave in their wake are expected to increase in the US as a result of climate change. Intelligent Insurer finds out how insurance pricing can incentivise individuals and society to increase wildfire mitigation efforts.

“The areas most sensitive to an increased frequency of large fires and property damage have a lot of development in the wildland-urban interface.” Shelly Yerks, CoreLogic

· Pricing crucial to encouraging wildfire mitigation efforts
· Cat level events ‘most sensitive to climate change’
· Frequency of large wildfires set to increase in years ahead
· Pandemic lockdowns and quarantines already hindering fire suppression work

As the images of huge wildfires become an annual feature on global news reports, cat risk modelling experts think insurance pricing could encourage more fire mitigation efforts as well as offering improved protection.

wildfire, insurance, pricing, risk, mitigation, climate change, USA, California, sensitivity, frequency, severity,, incentivise, property, structure

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