Kazakhstani insurance company to cover over $4 million for California wildfire damage
Kazakhstani insurance company Eurasia is set to pay over $4.6 million in reinsurance of risks by American insurers to cover the damages caused by wildfires in California, as reported by the company’s press service.
One primary and two secondary schools in California were nearly destroyed by the wildfires. Educational institutions, along with other municipal buildings in the state, were insured under the Alliant Property Insurance Program (APIP), which Eurasia Insurance Company is part of.
The APIP provides coverage exceeding $500 billion for over 10,000 public facilities across 45 states, making it one of the world’s largest insurance programs. The total insurance coverage for the three buildings amounted to $75 million, with Eurasia’s share of the liability potentially surpassing $4.6 million.
«Despite the severe damage caused by the wildfires, the majority of Californian real estate is insured through private insurance programs, which are further reinsured globally, including in Kazakhstan. It is important to note that students and employees of the burnt schools were evacuated in time, with no casualties reported. We are currently waiting for the necessary documents, including the damage assessment report, to process the reinsurance payment as quickly as possible. We also don’t rule out receiving new applications from the affected parties under other reinsurance programs,» the company said in a statement.
According to preliminary data, more than 7,000 and 5,000 buildings were destroyed in the neighborhoods of Eaton Canyon and Pacific Palisades, respectively. These wildfires have been ranked among the five most devastating fire disasters in the modern history of the U.S. and California.
Gallagher Re, a leading reinsurance broker, estimates that insured losses from the wildfires in southern California could reach $30 billion. Meanwhile, analysts at CoreLogic, a modeling firm, project losses from the fires could climb as high as $45 billion. Direct economic losses, as estimated by JPMorgan, are likely to exceed $50 billion.
