Eaton Canyon Fire Spread to Arcadia in Los Angeles 2025. Credit: Kyle/Adobe Stock

The recent wildfires in Los Angeles have once again underscored the devastating impact of climate and natural catastrophe risk on insurers and communities. As losses from natural disasters escalate, insurers face increasing challenges in underwriting and pricing policies accurately.

Traditional risk assessment methods—often based on broad geographic zones or limited historical wildfire data—are proving insufficient, leading to mispriced risk, market withdrawals, and coverage uncertainty for homeowners.

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