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Insured losses from Maui wildfire to fall between $2.5bn and $4.5bn: Bloomberg Intelligence

16th August 2023 - Author: Saumya Jain

The property and casualty insurance equity analyst team at Bloomberg Intelligence has estimated that the insurance industry loss from the Maui wildfires will fall between $2.5 billion and $4.5 billion.

wildfireThis estimate gives an insured loss mid-point of $3.5 billion, which is higher than the $3.2 billion insured property loss estimate provided by catastrophe risk modeller KCC.

Data released over the weekend from the Pacific Disaster Center and the Federal Emergency Management Agency shows that as of August 11th, 2,719 structures were exposed to the Lahaina fire.

Of the exposed buildings, the data says that 86% are classified as residential and 9% commercial, with a reported $5.52 billion of capital exposed.

In its report, KCC said that more than 2,200 structures were damaged or destroyed, and estimates that in total more than 3,000 structures were impacted by the fire, with approximately 2,170 acres burned.

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It’s the most destructive wildfire in Hawaii’s history.

Latest reports state that 106 people have died from the fire, with at least 100 people missing, and at least 11,000 people have been displaced.

The Lahaina fire began on Tuesday night and accelerated quickly due to dry conditions, low humidity, and wind speeds of up to 60mph.

KCC notes that Maui has had below-average precipitation through the spring and summer, contributing to the dry conditions.

“Hurricane Dora passing far to the south and a high-pressure system to the north created a strong pressure gradient which contributed to the high winds that helped to spread the fire quickly,” said KCC in its report on the event.

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