In the USA, number of people killed in the California wildfires has risen to 24 while the losses due to the wildfires estimated to be in the billions of dollars.
Analysts at AccuWeather estimate wildfire damages at 135-150 billion dollars, covering real estate, agriculture, infrastructure, and healthcare expenses for displaced populations. According to J.P. Morgan analysis, this is nearly 4 percent of California’s annual GDP. Media reports suggest it is sparking an existential insurance crisis in California.
J.P. Morgan analysts predict insured losses of 20 billion dollars, with uninsured losses potentially surpassing 100 billion dollars. There are three wildfires still burning in the Los Angeles area. The largest, the Palisades Fire, is just 13 percent contained.
While the exact cause of the fires is yet to be determined, early estimates suggest these could become the costliest wildfires in US history. AccuWeather projects economic damages and losses to range between $135 billion and $150 billion. The fires have devastated neighbourhoods such as Pacific Palisades and Altadena, with thousands of homes reduced to ashes.
Around 150,000 people have been evacuated, and over 700 have sought refuge in emergency shelters. As of Sunday (Jan 12), the Palisades Fire, with an area of 23,600 acres, was reported to be 11 per cent contained, while the Eaton Fire, with an area of 14,000 acres, was 27 per cent contained. A ‘fire tornado’ was reportedly sighted as the flames ravaged through the San Fernando Valley in California.
Power outages have affected nearly 70,000 customers across California, with Los Angeles County experiencing the majority of disruptions. The region has also reported significant damage to water, sewer, and power infrastructure.
The National Weather Service issued red flag warnings for extreme fire conditions, citing the role of Santa Ana winds in transforming the wildfires into destructive infernos. These winds, coupled with a prolonged drought, have aggravated the crisis.