Insured wildfire losses in Hawaii total at least $1 billion: Report

Insured losses from the wildfires that hit Maui and the Big Island of Hawaii Aug. 8-10 will likely be “at least $1 billion,” according to a report Monday from Risk Management Solutions Inc., a Moody’s Analytics company.

The losses will primarily affect property/casualty insurers with significant homeowners and commercial property market share in Lahaina, on the island of Maui, but it will take weeks or months to determine the total extent of the insured damages.

The report said The Pacific Disaster Center and the Federal Emergency Management Agency estimated that 2,207 structures were damaged or destroyed in the Lahaina fire, and 2,719 were exposed. RMS also noted “Lahaina’s relatively high $1.5 million average single-family home value” as contributing to the damage estimates.

The report lists the top three commercial property insurers in Hawaii by property direct premiums written in the state as First Insurance Co. of Hawaii Ltd., a subsidiary of Tokio Marine Holdings Inc.; Heritage Insurance; and American International Group Inc.

Although these insurers have exposure in Hawaii, “we expect that large carriers will readily absorb the losses given that business in Hawaii is a small fraction of their overall insured portfolios,” the report said.

Aon PLC’s Impact Forecasting said Friday the wildfires will likely cause total economic damages running into the billions of dollars.