Verisk Analysis Determines More Than 4.5 Million Households at High or Extreme Risk from Wildfire
JERSEY CITY, N.J., Nov. 21, 2013 - Results from the 2013 Verisk Wildfire Risk Analysis by Verisk Insurance Solutions - Underwriting, a unit of Verisk Analytics (VRSK), show more than 4.5 million U.S. households at high or extreme risk from wildfire.
The analysis identified the number and percentage of properties at risk from wildfire in ten states. Key takeaways from the 2013 Verisk Wildfire Risk Analysis include:
· California is home to almost 2 million households at high or extreme risk from wildfire, placing it first on the list.
· Texas ranks second, with 1.3 million households at high or extreme risk.
· At 24 percent, Idaho has the highest percentage of households at high or extreme risk from wildfire.
· Colorado, which has experienced more than $1 billion of insured wildfire losses since 2010, has the second-highest percentage and third-highest number of households at high or extreme risk from wildfire.
"Despite the fact that the number of acres burned in 2013 is lower than the past several years, our study shows insurer risk from wildfire is still significant," said Neil Spector, president of Verisk Underwriting. "In June, the risk played out in reality, with insurers incurring at least $385 million of losses due to the Colorado Black Forest fire, according to Verisk`s PCS® [Property Claim Services®] unit. As losses continue to mount, managing wildfire risk needs to remain a top priority for property insurers."
Results of the 2013 Verisk Wildfire Risk Analysis and individual state wildfire risk reports are available at www.verisk.com/wildfireanalysis.
Verisk conducted the analysis using FireLine(TM) - powered by AER(TM) technology - its wildfire risk management solution for insurers. FireLine assesses wildfire risk for individual properties to support underwriting decisions and manage exposure concentrations. Atmospheric and Environmental Research (AER) is a unit of the Verisk Climate division at Verisk Analytics.
FireLine was used in support of approved property insurance rate filings for individual carriers in California. Its results are validated after each significant wildfire, most recently after the Black Forest fire, when it identified every single property destroyed as being at risk from wildfire.
About Verisk Insurance Solutions - Underwriting
A unit of Verisk Analytics (VRSK), Verisk Insurance Solutions - Underwriting is a leading source of underwriting information about property/casualty insurance risk. Drawing upon vast experience in data management, predictive modeling, and risk assessment solutions, Verisk Insurance Solutions includes the industry-leading brands of ISO, AIR Worldwide, and Xactware. In the United States and around the world, Verisk Analytics helps customers protect people, property, and financial assets. For more information, visit www.verisk.com/insurance.
Contact:
Erica Helton/Giuseppe Barone
MWW Group (for Verisk Underwriting)
201-507-9500
ehelton@mww.com
gbarone@mww.com
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Source: Verisk Analytics Inc. via Thomson Reuters ONE
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