The Eaton wildfire in Los Angeles resulted in 17 fatalities and the destruction of over 9,000 structures in January. Ageing equipment from Southern California Edison is suspected of igniting the fire. California's $21bn wildfire fund was created to protect customers and prevent utility bankruptcies due to fire claims. Investigators are still assessing the fire's cause, and documents from California's Catastrophe Response Council suggest that claims from the Eaton fire could severely impact the fund's financial health, with insured losses estimated between $20bn and $45bn for related fires.
Insurance claims from the Eaton wildfire could fully exhaust a state fund established to protect customers against wildfires caused by utility companies, according to California's Catastrophe Response Council.
The January wildfire in Los Angeles resulted in 17 deaths and over 9,000 destroyed structures, raising concerns about the financial viability of California's $21bn wildfire fund.
The fund, which was set up in 2019, aims to prevent major utility companies from going bankrupt due to fire-related claims, primarily from damage caused by their aging equipment.
Investigators are currently determining the cause of the Eaton fire, while scrutiny of Southern California Edison has increased since the blaze began.
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