Bloomberg Intelligence’s property and casualty insurance equity analyst team estimates that the insurance industry’s losses from the Maui wildfires will fall between $2.5 billion and $4.5 billion.
This estimate gives an insured loss mid-point of $3.5 billion, which is higher than the $3.2 billion insured property loss estimate given by the catastrophe risk modeller KCC.
Data released over the weekend from the Pacific Disaster Center and the Federal Emergency Management Agency showed that as of August 11, 2,719 structures were exposed to the Lahaina fire.
Of the exposed buildings, the data says 86% are classified as residential and 9% commercial, with a reported $5.52 billion in capital exposed.
In its report, the KCC said that more than 2,200 structures were damaged or destroyed, and estimated that in total more than 3,000 structures were affected by the fire, of which approximately 2,170 hectares were burned.
It was the most destructive wildfire in Hawaii’s history.
The latest reports say that 106 people have died as a result of the fire, with at least 100 people missing, and at least 11,000 people displaced.
The Lahaina fire started on Tuesday night and has grown rapidly due to dry conditions, low humidity, and wind gusts of up to 60mph.
The KCC says Maui has below average rainfall during the spring and summer, which contributes to dry conditions.
“Hurricane Dora passing far to the south and a high-pressure system to the north created a strong pressure gradient that contributed to strong winds that helped spread the fire,” KCC said in a report on activity.
