At the ILS Bermuda Convergence 2025 conference, expert Levi Blair emphasized that improving fire-smart building codes is crucial for preventing disasters like January’s Palisades Fire in California, which destroyed 37,000 acres and 16,000 structures, causing $25.2 billion in insurance losses and 12 fatalities. Currently, California is relaxing building codes to expedite recovery, contrary to the need for more stringent regulations. Blair recommended increasing spacing between homes, as those within 20 to 30 feet are at higher risk. While new wildfire-resistant building codes are in development, their implementation will take decades.
Gregory Zarin, another speaker, noted that many wildfires stem from both natural events and human actions, including outdated equipment. Liability considerations are central in assessing wildfire causes, particularly regarding potential negligence from third parties. The recent wildfires have severely impacted California’s insurance market, leading to skyrocketing premiums and coverage withdrawals.
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