Economic losses from LA wildfires could top $50bn

The wildfires raging through the Los Angeles area are projected to be among the most expensive natural disasters in U.S. history, with economic losses estimated between $52bn and $57bn, according to AccuWeather. J.P. Morgan has also revised its estimate to around $50bn. The fires have already led to the evacuation of at least 130,000 people and the destruction of approximately 2,000 buildings, resulting in 10 fatalities at the time of writing. Denise Rappmund, a senior analyst at Moody’s Ratings, stated: “The fires moving through Los Angeles County highlight the intensifying risk that wildfires pose to significant areas of the State of California.” The overall economic damage is expected to surpass the $30bn loss from the Camp fire in 2018, making it a significant event for the state’s insurance market.