Report examines lessons learned from South California wildfires

Given the potential for US$2.5 billion in insured losses for wildfires in California alone, last year’s wildfire season ranks as one of the costliest wildfire seasons in recent history, according to a joint report by Risk Management Solutions (RMS) and ImageCat, Inc.
RMS’ analysis shows that in the past 10 years of Californian wildfire history, close to 1,350 structures have been burned on average each year. The estimated annual insured loss of about US$490 million is nearly twice that of the long-term average.
Moreover, while on average less than 10% of the burnt areas in the United States are in California, around 70% of the total insured losses are from properties in Southern California, an RMS release says.
"Housing developments are rapidly expanding into wildland areas, [creating] an environment in which fire can readily move between structural and vegetation fuels, increasing the threat to people and their properties," said Patricia Grossi, a senior researcher at RMS.
"Last year’s California wildfires serve as a stark reminder of the need to manage and mitigate this peril through more risk-informed decisions."
Twenty-three separate fires in October 2007 consumed approximately 520,000 hectares of land in Southern California.
Insured losses were primarily due to burnt residential structures and their contents. Other claims included smoke damage, additional living expenses due to the mandatory evacuation, burned automobiles and a limited number of damaged or destroyed commercial structures.