Lahaina fire: Insured losses likely to hit $3.2bn, says modeller
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Karen Clark & Co has estimated that the insured property losses from the fire that hit the town of Lahaina last week, Hawaii’s Maui Island, to be around $3.2bn (£2.5bn).
The estimate is based on the modelling firm’s use of its US Wildfire Reference Model.
The amount is much higher than the recent estimate of $1bn by ratings agency Moody’s Investors, which owns rival modelling firm RMS.
KCC said in Hawaii, the dry season is becoming hotter and drier due to climate change, which leaves the state more vulnerable to wildfires.
The firm estimates that more than 2,200 structures fall within the fire perimeter, and more than 3,000 total structures were impacted by the fire.
“The majority of damaged structures were residential buildings, though many commercial buildings were damaged as well,” said KCC. “The high proportion of wood frame and older construction present in the Lahaina building inventory likely contributed to the high damageability rates observed in the fire.”
In addition to Lahaina, other fires also broke out on Maui.
Are the insurance impacts on P&C firms well absorbed by reinsurers?
