Can risk management lessons be learnt from the LA wildfires?

Nat cat losses numbers revealed from LA wildfires lead to more questions about changing risk management needs.

Pacific Palisades Image @Wikimedia Commons/Jackg98.
Buildings in Pacific Palisades destroyed by the wildfires in January 2025.

The Los Angeles wildfires over the New Year period have quickly become a beacon for those in the industry who want to see more done around risk mitigation and other best practice changes to avoid costly mistakes being made again.

The huge bill could see effects on investments for insurers. The losses could put pressure on companies that rely on investment returns as underwriting results take a hit.

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