Lindsey Frase & Wade Gulbransen give an update to Howden Re’s 2025 Los Angeles wildfire report in Intelligent Insurer
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The devastating January 2025 Los Angeles fires were among the costliest in U.S. history, with insured losses projected to be $20–45 billion, and many households left without cover.
“Wildfires are now regarded as a primary peril, given their increasing frequency, severity, and multi-billion-dollar loss potential,” says Lindsey Frase, California resident and Managing Director at Howden Re. “Insurers must re-evaluate underwriting models, capital allocation and pricing assumptions, putting wildfire risk on the same footing as hurricanes.”
Howden Re’s report, “2025 Los Angeles wildfires: a path forward”, calls for urgent reform.
Recommendations include approval for catastrophe modelling, recognition of reinsurance costs in rate-setting, and a $6 billion investment in mitigation measures that could halve economic losses.
As Wade Gulbransen, Divisional CEO, North America, notes: “Looking ahead, the focus must be on restoring both confidence and capacity. Sustainable capital must return and remain committed so the market can move from short-term fixes to long-term stability.”