While many anticipated and predicted that hurricanes would be the catastrophe story of 2007 — and indeed the hurricane season still has 32 more days to go — the recent wildfires and subsequent damage in Southern California have shown that catastrophes come in all different shapes and sizes, wreaking havoc on insurance companies as claims begin piling up.

According to a report from Guy Carpenter, the wildfires that began on Oct. 21, 2007 have devastated parts of Southern California, destroying more than 2,700 structures, including 2,013 homes. The report stated that officials estimate up to 950,000 people have been affected by the fires. San Diego has suffered the worst fire damage, with more than 1,500 homes destroyed. That's nearly three-quarters of the total number of homes destroyed by the blazes.

Three of the largest catastrophe modelers have released their figures for insured losses, and while they might not rival the $40+ billion price tag of Hurricane Katrina, they are certainly significant. AIR Worldwide estimates that insured losses could exceed $1.5 billion, while Risk Management Solutions (RMS) offered a wider margin of $900 million to $1.6 billion. Other media outlets have reported that the EQECAT modelers have reached similar conclusions, releasing estimates of between $1-$1.5 billion.