Tamping down wildfire threats

Climate risk management is a critical human and business challenge – one that is increasingly visible in the current escalation of the twin perils of wildfire and flooding. In 2021, economic loss due to wildfires was $20 billion in the United States, less than half of those insured, marking the seventh year in a row such losses surpassed $2 billion.

Produced in collaboration with the Insurance Information Institute (Triple-I), Tamping Down Wildfire Threats report discusses how insurers are poised to aid at-risk communities through pre-emptive mitigation leveraging advanced data technologies and data and by offering community-based catastrophe insurance programs and other solutions.

Key findings:

• Collaboration: As wildfires are an issue that connects many stakeholders a joint approach is necessary to tackle it. This means partnering with communities to create strategies that focus on proactive risk prevention.
• Advanced tools and technology: Deployment of sophisticated prediction tools and machine learning-based pricing and risk models can enable more accurate risk assessments.
• Insurers as first responders: Although insurers are already on the frontline in catastrophic weather events such as wildfires, more needs to be done to inform public policy to create partnerships that drive change.

The role of insurers is changing. Mitigating wildfires and other extreme weather events is now part of their remit to serve customers with the best risk advice. To learn more, download our report.