As of January 2025, Los Angeles is grappling with a series of bushfires that have ignited across the region, exacerbated by dry conditions and strong winds. These fires have prompted widespread evacuations, threatening homes and natural habitats alike.

They've resulted from a 'perfect storm' of factors – long-term climate change combined with extreme weather conditions.  The tragedy offers insight into the potential exposure for global cities in a similar climate zone, particularly Perth and Adelaide that have witnessed increased temperatures of +1 – 2°C over the over the long term average (BoM -Australian 12-monthly mean temperature anomalies since 1911)

Since the fires are not fully contained, the estimation of insured losses is still ongoing. As at 13 January industry analysts (autonomous.com) have estimated the insured losses range between $10 and $30 billion. Further economic losses are predicted to range between $150 billion to $275 billion.

The impact of bushfires, such as those occurring in Los Angeles, on the availability and cost of coverage have the potential to impact LGIS, as WA and more widely Australia are highly exposed to bushfire. Unfortunately, disasters of this scale are likely in the future as rainfall decreases, regions get warmer and increased urban sprawl.

Globally there will probably be increased focus on the contribution of land use planning, prescribed burning plans and resilience activity. It will be interesting to watch the US litigation environment and if any nuclear verdicts result from the LA fires.

For furthers discussions chat to your LGIS Account Manager.