AIR ESTIMATES WOOLSEY FIRE WILL COST INSURERS AT LEAST $2.5BN

AIR Worldwide said insured losses from the Woolsey fire in southern California will be at least $2.5bn. The catastrophe modelling firm said uncertainty over the payment of additional living expenses resulting from mandatory evacuations and other losses could drive total insured losses above that figure. The estimate, which is based on the assumption of nearly 100% insurance take-up rates, includes physical damage to property and direct business interruption losses. But it does not include indirect and contingent business interruption, loss adjustment expenses and the impact of demand surge. The Woolsey fire, which ignited on November 8, burned for two weeks, burned through nearly 97,000 acres and more than 1,600 structures. AIR said it was still assessing damage from the Camp fire in Northern California.