Hawaii Wildfires May Generate Insured Losses Exceeding $4.5 Billion

Moody’s RMS on Tuesday said insured losses from the wildfires Aug. 8-10 in Hawaii could exceed $4.5 billion.

The loss estimate reflects property damage, contents and business interruption across residential, commercial, industrial, automobile and infrastructure assets, a Moody’s RMS statement said.

The Newark, California-based catastrophe modeler said total economic losses should be $4 billion to $6 billion, and that most of the economic damage is expected to be covered by insurance, in the range of approximately 75% or more, because wildfire is a covered peril under typical insurance policies and the island has high insurance penetration rates.