The Bermuda Monetary Authority published survey-based estimates indicating Bermuda (re)insurers expect to incur almost USD 10 billion of gross claim losses from the January 2025 Southern California wildfires, reflecting payments to policyholders and cedants in the United States. The estimate is based on commercial insurers’ market claims data collected in March 2025 through the BMA’s US Data Claims Survey and covers direct insurance and reinsurance, with 119 (re)insurance companies responding. The BMA noted the figures exclude exposure covered by the majority of insurers in Bermuda’s insurance-linked securities sector, meaning incurred gross losses and claims paid could be higher. The release also referenced public estimates of USD 250 billion to USD 275 billion in economic losses and at least USD 30 billion in industry-insured losses, implying Bermuda (re)insurers may bear up to around 30% of insured losses, and it reiterated comparable estimated Bermuda market shares for several recent major US catastrophe events.
Bermuda Monetary Authority 2025-05-01
Bermuda Monetary Authority estimates Bermuda (re)insurers’ gross California wildfire claims at nearly USD 10 billion
The Bermuda Monetary Authority reported that Bermuda (re)insurers anticipate nearly USD 10 billion in gross claim losses from the January 2025 Southern California wildfires. This estimate, based on the BMA’s US Data Claims Survey, excludes most of Bermuda’s insurance-linked securities sector, suggesting potential higher losses. Public estimates indicate economic losses of USD 250-275 billion and industry-insured losses of at least USD 30 billion, with Bermuda (re)insurers potentially covering up to 30% of insured losses.