Insured wildfire losses in Hawaii at least $1bn, says RMS
Insured losses from the wildfires that hit Maui and the Big Island of Hawaii last week will likely reach at least $1bn, according to a report from Risk Management Solutions (RMS), a Moody’s Analytics company.
The losses will primarily affect P&C insurers with significant homeowners and commercial property market share in Lahaina, on the island of Maui, but it will take weeks or months to determine the total extent of the insured damages.
The report says The Pacific Disaster Center and the Federal Emergency Management Agency estimated that 2,207 structures were damaged or destroyed in the Lahaina fire, and 2,719 were exposed.
The report lists the top three commercial property insurers in Hawaii by direct premiums as First Insurance Co of Hawaii, a subsidiary of Tokio Marine Holdings, Heritage Insurance and AIG.
Although these insurers have exposure in Hawaii, RMS expects that “large carriers will readily absorb the losses given that business in Hawaii is a small fraction of their overall insured portfolios”.
Aon’s Impact Forecasting said Friday the wildfires will likely cause total economic damages running into the billions of dollars.
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