Catastrophe Risks

Howden's report highlights California's growing insurance protection gap, driven by regulatory restrictions and wildfire risks. It calls for urgent reforms, risk-based pricing, and public-private collaboration to stabilize the market. A $6 billion investment in mitigation could have cut recent wildfire losses by nearly 50 percent, restoring market confidence. Read More

Connecticut's captive insurance model, designed to address a homeowners' crisis, could offer California a solution for its wildfire-driven insurance challenges. Michael Maglaras highlights how a public-private partnership and efficient resource allocation can create a scalable, adaptable insurance framework to tackle climate-related risks and improve market stability for homeowners. Read More

Fitch Ratings projects Los Angeles wildfires may consume 30 percent of European reinsurers' 2025 catastrophe budgets, with insured losses estimated at $25–$45 billion. Despite financial strain, reinsurers' strong capital positions and diversified risks minimize material impact. Fitch expects tempered rate declines with significant increases limited to high-risk regions like California. Read More

The Federal Emergency Management Agency (FEMA) transfers $757.835 million in flood risk to private reinsurers, expanding coverage with 27 companies. Total National Flood Insurance Program risk transfer now reaches $2.058 billion. Read More

Munich Re reports $140 billion in insured losses from 2024 natural disasters, including hurricanes Helene and Milton. Rising losses underscore climate change's impact. Read More