Shares of US insurance companies fell sharply as estimates of losses from the Los Angeles wildfires soared to $20 billion. The devastating fires have raised concerns about the financial impact on insurers, prompting fears of substantial claims payouts.
Industry analysts warn that this figure could rise further as damage assessments continue, potentially affecting insurers with significant exposure to property and casualty claims in California. The news has put pressure on major insurers’ stock prices amid heightened scrutiny of their disaster risk management strategies.