‘Structural Shift’ Occurring in California Surplus Lines

Moody’s reports that U.S. catastrophes, led by the 2025 Los Angeles wildfires and severe convective storms, drove global insured losses to $224 billion, with the United States accounting for over 80% of that total. The wildfires alone generated $20‑30 billion in claims, while convective storms contributed roughly $45 billion, marking the first year secondary perils eclipsed traditional hazards. Although total losses were 25% lower than the 2024 record, this marks the sixth consecutive year global insured losses topped $100 billion. The surge reshapes insurers’ risk profiles and accelerates market pullback in California’s homeowners sector.

Source: Claims Journal