2015 insured losses from wildfires in the U.S. may total US$1.75 billion: Guy Carpenter

Guy Carpenter & Company, LLC, a global risk and reinsurance specialist and wholly owned subsidiary of Marsh & McLennan Companies, has said that preliminary data indicates that 2015 insured losses from wildfires in the United States “may approach or exceed US$1.75 billion.”

On Monday, Guy Carpenter released a new briefing, titled U.S. Wildfire: An Ever Present Hazard, which assesses the wildfire risk in the U.S. The briefing also provides insight into the ongoing threat of wildfires, as well as risk mitigation strategies and portfolio modelling for the peril. [click image below to enlarge]

The wildfire threat this summer was amplified by a strong ridge of high pressure that created very hot and dry conditions in the western U.S., Guy Carpenter said in a press release. More than 9.27 million acres were burned by wildfires as of Oct. 8, as compared to the 10-year average of about 6.3 million acres, according to data from the National Interagency Fire Center.

Related: Fatal California wildfires destroy 1,000 structures

Some of the most destructive fires this year include the Okanogan Complex in Washington State, which burned over 133,000 acres and consumed at least 120 residences. Further south, the Valley Fire in Lake County, California consumed at least 1,280 homes and 27 multi-family structures and burned over 76,000 acres. There was also the North Star wildfire, which burned over 218,000 acres in Washington and the Rough fire, which consumed more than 151,000 acres in California.

“Wildfires are a complex peril due to a number of varying prediction factors, such as temperature, rainfall deficit and wind conditions,” explained James Waller, research meteorologist for Guy Carpenter, in the press release. “As winter approaches, a strong El Niño should bring much needed rainfall to most of California and the Southwest. However, the Northwest will likely continue to experience dry conditions through the winter.”

Related: Smoke grounds aircraft battling big wildfires east of Cascade Range in Washington state

Sherry Thomas, Guy Carpenter’s head of catastrophe management – Americas, added that “wildfire continues to be a growing threat to properties in the U.S. and a risk that does not appear to be diminishing.”

The briefing points to a few guidelines recommended by the Insurance Institute for Business and Home Safety:

• Create a “low-combustible” or “non-combustible” zone within five feet of the home, free of tree branches, debris on the roof or in the gutters and materials under the deck. Ensure that the roof to edge or eave to edge areas are free of debris;

• Pay careful attention to the placement and storage of combustible materials, such as propane tanks;

• Carefully select roof, deck, fence and siding materials for protection. Use Class “A” roof covering to shield the attic and home;

• Use screens (1/8 mesh) on entry points to the home, such as vents in the roof, eaves or dryer vents. This offsets ember penetration when a fire is near the home. Avoid flammable materials in the attic;

• Maintain vertical and horizontal spacing of tree and shrub clusters, anywhere within 30 feet of the home, to offset the spread of wildfire; and

• Replace single-pane windows with multi-pane tempered glass. Screen all windows to reduce ember penetration when glass fails.