Property Perspective - If it ain’t one thing it’s another
While the wind season got off to an early start with both Tropical Storm Alberto and Tropical Storm Beryl making landfall in the Southeast before the official June 1st beginning of hurricane season, it has settled down and many property (re)insurers have been focused on other parts of the country. While wind and earthquakes typically top the catastrophe “worry list” for (re)insurance companies, wildfires seem to be jockeying for more attention.
The Rocky Mountain Insurance Information Association recently announced that preliminary damage estimates from the Waldo Canyon and High Park fires have reached $449.7m. The Waldo Canyon fire is expected to be the largest in Colorado’s history. A total of 600 homes were destroyed. Both are now fully contained but the National Interagency Fire Center Predictive Services has announced above normal, significant fire potential for much of the Southern California mountain region, New Mexico, Colorado, Montana and the Dakotas, citing a combination of worsening drought conditions, above normal “Energy Release Components” and a heavy/continuous fuel bed.
Will 2012 end up similar to 2010 when an area like Arizona - a state many companies enter to diversify away from catastrophe exposure - topped the list of states with most insured property losses because of taking an estimated $2.7B of hail losses?
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