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Guy Carpenter Estimates Industry Losses from Hawaii Wildfires

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This article from The Insurer describes how Guy Carpenter analysis indicates that insured losses from the recent wildfires in Maui will range from USD 4 billion to USD 6 billion, which is at the high end of industry estimates. (Please note: the original article is behind a subscription wall.)

Guy Carpenter used analysis from recent California wildfires to determine its projection. Demand surge for an island economy is cited as a major factor in driving uncertainty regarding losses. For example, following Hurricane Maria’s impacts on Puerto Rico in 2017, Guy Carpenter indicated that demand surge was understood to have increased the overall cost by 20 to 35 percent. With Hawaii being much further from the US mainland, it is possible demand surge could be higher.

Business interruption claims affecting local tourism, along with debris removal costs, are also cited as factors contributing to claims severity.

Guy Carpenter estimates $4bn-$6bn industry loss from Hawaii wildfires

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