Will the insurance industry be able to survive tens of billions of dollars in losses from the Los Angeles fires? There have been catastrophic fires in California before, but never anything quite like this. So what is going to happen to homeowners if their insurance companies go bankrupt and cannot pay? Even the ones that do not go bankrupt are really going to struggle. I have a feeling that some of them will delay payouts for an extended period of time and will deny as many claims as they possibly can in a desperate attempt to survive. In the end, it is likely that vast numbers of homeowners that were counting on their insurance companies to bail them out will be left holding the bag.
It is being projected that total economic losses from these fires could reach 150 billion dollars, and the insurance industry will be hit with approximately…
