France Faces €15 Billion Loss From Unprecedented Wildfires

Unprecedented wildfires have swept through France, Spain, and Greece, resulting in the evacuation of approximately 220,000 people in France. Total losses in France are estimated between €10 billion and €15 billion, which may make this the most expensive wildfire event in the country's history.

Because the state-backed natural disaster compensation scheme in France does not cover wildfires, private domestic insurers are expected to bear the majority of recovery costs. These expenses include property damage, business interruption, and emergency housing for those displaced by the fires.

Analysts from Morningstar DBRS and Fitch Ratings describe current losses as manageable. However, Marcos Alvarez of Morningstar DBRS warned that the financial threat to the insurance industry would change significantly if fires reached medium-sized cities like Bordeaux, creating a different scale of loss.