The wildfires burning across Southern California are on their way to being the most costly natural disaster in the history of the state, with estimates that insurers are facing losses exceeding $20 billion.
The estimate could grow as the fires continue to rip through Los Angeles, CNBC reports, citing JP Morgan analysts. The projection led to the publicly traded stocks of some of the nation’s largest insurance providers sliding this week, including Allstate.
Estimates placed the total economic damage reaching up to $57 billion, according to a report from the Guardian. Consumer advocates tell the news outlet that the increase in volatile natural disasters in recent years has hurled the insurance industry into “significant disarray,” which has led to policy owners getting a slew of “sad surprises” when they file their claims and that the aftermath of the wildfires in Los Angeles will be no different.