As California state agencies report that the Palisades and Eaton wildfires are fully contained, the questions plaguing homeowners and insurers alike is what will be the true cost of the devastation — and what does recovery look like?
State insurance regulators were in the middle of a reform campaign to address instances of coverage suspensions and unrenewed policies in wildfire-prone regions when the blazes broke out on Jan. 7, further complicating an already complex insurance dynamic. Officials have allowed insurers to use catastrophe (cat) risk models when determining damages.
With experts predicting that
Read below to stay on top of the latest developments and get informed on notable market changes.
Wildfires leave California insurance market on edge of collapse
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The insurance market is still determining the fallout from the Los Angeles wildfires.
Before the fires started on Jan. 7, the property insurance market was already on shaky ground, with State Farm, Farmers and Allstate having canceled or not renewed homeowner policies, and suspended new coverage.
The state's insurance regulator
Life insurance predictions for 2025
Article by Digital Insurance Staff
Digital Insurance contacted insurance professionals to comment on life insurance trends for 2025.
Experts suggest the sector is set to experience growth this year as more insurers deploy technology to improve the customer experience, underwriting and risk assessments.
Manulife's global chief analytics officer shares GenAI strategy
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Jodie Wallis, the global chief analytics officer at Manulife, which operates as John Hancock in the U.S., spoke with Digital Insurance about how the company is deploying generative artificial intelligence. Wallis oversees the company's AI teams.
California allows wildfire cat models, waits for insurance industry reaction
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It's still unclear whether insurers will implement catastrophe (cat) risk models in California, now that the state has allowed their use, and
Verisk, the global data analytics and risk assessment firm that serves many top commercial and property and casualty insurers, became the first wildfire catastrophe model provider to ask the California Department of Insurance to review its model.
Verisk made the request on January 2, the first day CDI
How will auto insurance change in 2025?
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Here's what researchers are predicting for the auto insurance industry in 2025.
Auto insurance premiums are expected to rise by up to 5%, according to the
Though this year's predicted rate hikes are much lower than those of previous years, drivers are still likely to shop around for better rates.
Essential insurance information for California residents affected by wildfires
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As the Los Angeles wildfires burned, California insurance commissioner Ricardo Lara took several actions in response to affected residents' insurance needs. This is a roundup of these developments.
On January 15, the commissioner expanded a moratorium first issued on January 10 preventing homeowners insurance cancellations and non-renewals. The moratorium is similar to previous ones issued following wildfires throughout the state.
The January 10 moratorium applies to those in the areas of the Palisades and Eaton fires, as well as ZIP codes bordering on those areas, in Los Angeles County, for one year following Governor Gavin Newsom's January 7 emergency declaration. The moratorium applies to those residents regardless of whether they suffered a loss.
The aftermath of the California wildfires: Navigating what comes next
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As shell-shocked residents begin to try and assess the damage to their homes and businesses, the decisions to be made and the information to be provided will be almost overwhelming.
It won't be an easy process, but understanding some of the terminology and what to generally expect going forward can help expedite claims for policyholders and insurers.
Cybersecurity is top threat to business growth: Chubb
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Cybersecurity and technology disruption are the top threats to business growth identified by a Harris Poll of 500 business leaders, commissioned by Chubb for
Almost 90% of companies have or will adopt business interruption coverage for cyber incidents, natural disasters and supply chain disruptions. According to the report, over half of respondents have coverage in place and a third plan to implement one in the next 12 months.
Juan Luis Ortega, president of North America insurance at Chubb,
Will California wildfires take down the state's backstop insurance plan?
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With the Los Angeles wildfires causing an estimated $17 billion in insurance losses — and potentially up to $150 billion in economic losses — the California FAIR Plan Association (
FAIR Plan president Victoria Roach had said in September that the association was "one disaster away" from collapse.
The Los Angeles wildfires are that disaster, said
Meet the insurtech: Ric
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Before launching Ric, the co-founders were co-workers who were purchasing homes at the same time. The conversation kept shifting to the lack of good catastrophe coverage options on the market, and they started discussing what alternatives might look like and how they would like to access those options.
From there, they started developing models, programs and internet protocol to address market needs.
