Wildfires play a complex role in overall climate risk that insurers need to understand and develop strategies to address. Traditional risk transfer isn’t sufficient to address these chaotic, interconnected perils – but ceasing to insure complex risks isn’t a strategy for long-term success. What’s needed are risk reduction, pre-emptive damage mitigation, and a deeper understanding of the evolving nature of this hazard. Insurers are well positioned to lead the way.
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