As noted by Delos Insurance Solutions, California has experienced a sharp rise in wildfire activity in 2024.
More than 207,000 acres of land have burned so far this year, compared to just 10,000 acres during the same period in 2023.
Over 3,500 wildfires have swept across the state since January, far exceeding the five-year average of 39,000 acres burned by mid-July.
The surge in wildfire damage has intensified the existing crisis surrounding wildfire insurance in the state.
Many traditional insurance carriers have withdrawn from providing coverage in areas prone to wildfires, leaving homeowners with limited options for affordable insurance.
This situation has been described as a crisis, with numerous families affected by non-renewals and steep increases in premiums.
Delos Insurance Solutions has positioned itself as a company capable of addressing this crisis through the use of patented technology to assess wildfire risks more accurately.
Kevin Stein, CEO of Delos, emphasized the need for affordable insurance: “California homeowners need to be able to find reasonably priced insurance.”
Stein added: “Climate events are increasing in intensity, and striking in new areas.
“It is not a case of people moving into wildfire-exposed areas, but of wildfire-exposed areas expanding near them.”
Delos’s proprietary wildfire model has reportedly enabled them to offer insurance to tens of thousands of homeowners in areas where other insurance providers have withdrawn.
This technology helps to identify homes that, despite being located in wildfire-prone regions, are at lower risk and eligible for coverage.
David Shew, a retired Cal Fire Chief and advisor to Delos, noted the importance of adopting new approaches to tackle the state’s insurance challenges.
“As conditions get worse, we need to find different solutions to the insurance crisis,” Shew said.
The increasing complexity of wildfire risks demands advanced tools for data analysis and risk assessment, which Delos claims to have pioneered.
Delos leverages satellite imagery and a range of data points to better understand and predict wildfire risks, allowing them to underwrite properties that other insurers deem too high-risk.
This approach, according to Delos, can provide more homeowners with affordable insurance options even in highly stressed areas.
While Delos is focused on expanding its offerings, the broader insurance market remains restrictive.
According to Delos, not all homes in wildfire-exposed regions are uninsurable.
Many homes are less vulnerable to wildfire damage and could qualify for lower-cost insurance.
By utilizing advanced modeling and data integration, Delos aims to assist in identifying homes that qualify for coverage, offering some relief to affected homeowners.
However, the availability of affordable insurance remains a challenge, and many homeowners still face non-renewals or steep premium hikes.
The ongoing crisis highlights the need for innovative solutions and changes in how wildfire risk is assessed across the industry.
As California continues to face increasing wildfire risks, the insurance market is feeling the strain.
More than 3,500 wildfires have burned 207,000 acres in the state so far this year, compared to just 10,000 acres during the same period last year.
Many traditional insurance carriers have pulled back from offering coverage in high-risk areas, leaving homeowners with limited options.
Delos Insurance Solutions has developed a proprietary wildfire model that allows them to insure homes in wildfire-exposed regions at more affordable rates.
Despite these efforts, the insurance market remains difficult to navigate, with many homeowners still facing non-renewals and premium hikes.
