AIG, Chubb Dispatch Wildfire Crews as California Blazes Spread
- Insurers could see several billion in losses, analyst says
- AIG has been adding resources to its wildfire protection unit
This article is for subscribers only.
California’s raging wildfires are so bad that American International Group Inc. and Chubb Ltd. are deploying teams of specialists and former firefighters to spray retardants on homes. The season may soon rank among the industry’s most costly.
The latest blazes have killed at least 31 people and damaged thousands of structures. For insurers that could mean several billion dollars in losses, RBC Capital Markets analyst Mark Dwelle told clients in a note on Monday. Last year, 1.24 million acres burned across the state, generating $16 billion in costs for insurers covering homes and farms, or almost quadruple the amount in 2016, according to ratings firm A.M. Best.