The bottom line is that 2025 will be an interesting year, so buckle up.

years like 2011, with significant earthquakes (Tohoku and Tsunami), floods (Queensland & Thailand), U.S. severe weather (Joplin Tornado), and an active hurricane season with landfalls like Irene, to impact overall rate environment of the insurance industry across multiple regions.

The insurance industry is well capitalized, and although these fires are a significant loss for the insurance industry, typically, it takes several events across the world over a given year,

Undoubtedly, these fires will have local impacts and will likely speed up the ongoing regulatory changes and accelerate the usage of risk models to help understand wildfire hazards.

Overall, it is too early to predict what effect these California wildfires will have on the insurance market. These January wildfires impacted the industry in what is typically a quiet month, which is not a good start to the 2025 insurance cycle.