Wildfires become most damaging event on record in California

The recent wildfires in the US state of California, which killed at least 43 people and injured 185 others, could in aggregation become the most damaging event on record in the state, according to Impact Forecasting’s latest edition of its monthly Global Catastrophe Recap.

Data from Californian fire protection organisation, CalFire, indicated that nearly 9,300 structures were damaged, of which more than 8,560 were destroyed. The worst damage was noted in Napa, Sonoma, Mendocino, Lake Solano, Butte, and Yuba counties.

The California Department of Insurance cited that at least 19,000 residential, commercial, and auto claims had been filed, with payouts exceeding $3.32 billion.

This total was expected to rise as high as $8 billion as additional claims were processed, representing, on an aggregated basis, the costliest insured wildfire event ever recorded.

Meanwhile, another significant wildfire outbreak impacted central and northern Portugal, killing at least 45 people. The fires swept through several districts, notably Coimbra, Viseu and Castelo Branco, causing significant property and commercial damage.

The Portuguese Association of Insurers stated that total insured losses were likely to reach €200 million ($232 million), representing the costliest event on record for the local industry.

Additional fires caused at least four fatalities in northwestern Spain.

Steve Bowen, Impact Forecasting director and meteorologist, said: “In a year already marked by elevated catastrophe losses, October continued in the same vein. Historic wildfire events in Portugal and California are poised to make October the costliest month for the insurance industry ever recorded for the peril. The multi-billion dollar payout in California alone highlights the enormity of the event footprint as assessments and restoration efforts continue across the state.”

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