Farmers’ loss estimate does not include FAIR plan losses. (Credit: Diego M. Radzinschi/ALM)
Farmers expects losses of about $600 million from the LA wildfires, the company announced last week.
“With deep roots in Southern California, the Farmers Exchanges remain dedicated to supporting the recovery process for all their customers, employees and communities impacted by the devastating fires,” the company said in a statement. “The Exchanges also want to reaffirm their previously announced commitment to expand coverage options in California.”
Insurers have paid out $6.94 billion in LA wildfire claims so far, according to the California Department of Insurance. As of Feb. 5, 33,717 claims had been filed.
Several insurers have announced large losses due to the fires. Allstate has reported losses of $1.1 billion, and USAA is estimating losses of $1.8 billion. Chubb is also forecasting losses of more than $1 billion, and Zurich expects losses of $200 million.
At the beginning of February, State Farm requested an emergency rate hike to help it cope with wildfire costs. The company says it has so far received 8.700 wildfire claims and paid out more than $1 billion. The California Department of Insurance rejected the request.
California’s FAIR Plan is estimating losses of $4 billion and received approval this month to assess its member companies $1 billion to help pay it. Farmers’ loss estimate does not include FAIR plan losses.
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