Toolkit: wildfires - managing the growing threat and impact
In many places across the globe, wildfires are becoming more frequent, larger and more severe, posing a growing threat to communities and ecosystems.
Understanding the risk
Wildfires have become more frequent and severe, posing increased risk to communities and ecosystems worldwide. In recent years, areas like California have experienced significant economic and insured losses due to these events, including the 2025 Los Angeles wildfires.
The economic losses from wildfires continue to escalate with increasing frequency and severity of events. Due to property concentration and high property values in wildfire-exposed areas, the US experienced 9 of the 10 most expensive wildfire events since 1970.
Naturally-occurring wildfires from lightning strikes have always played a crucial role in the maintenance of forest ecosystems. However, today, they are primarily caused by human activities. The increasing frequency of destructive wildfires, partly due to climate change, necessitates a reassessment of wildfire risk management.
Mitigation & adaptation
The strongest lever to increase insurability and sustainability of communities, is to double down on mitigation and adaptation efforts. Studies have consistently shown that over the long-term, actions taken to prevent and mitigate against natural disasters result in reduced losses and allow for more efficient rebuilding. Swiss Re is proud to be a member of three trade groups in the US that signed an open letter to state leaders to accelerate the integration of wildfire resilience into rebuilding efforts, the American Property Casualty Insurance Association (APCIA), Insurance Information Institute (III) and National Association Mutual Insurance Companies (NAMIC).
For insurers
Reinsurers play an important role as a “shock absorber,” but in today’s constantly evolving world, we are much more than that. Beyond financial support, reinsurers contribute expertise in risk identification and assessment to help insurers understand accumulation threats and enhance resilience, which then trickles down to the consumer.
Our AI powered wildfire risk solution developed by Bellwether and available in CatNet® provides forward-looking wildfire hazard data with 12 and 60 month probability forecasts for more precise risk assessment.
When compared to the actual footprints of the Mountain Fire in Ventura County, California and the McDougall Creek Fire near Kelowna, British Columbia, CatNet® Wildfire maps showed a high degree of consistency between actual and predicted.
Find out more about our offerings across risk transfer and technology solutions:
For corporates
Our RDS platform helps companies build a digital twin of their assets to get an accurate overview of exposure. The RDS Property Exposure Management solution gives risk managers insight into their property portfolio exposure. A multinational utility company, for example, uses the tool to identify which power generation assets are most exposed to natural hazards such as floods, storms, or wildfires. With wildfires posing a growing threat—especially in regions experiencing prolonged drought and extreme heat—this insight enables companies to assess the vulnerability of assets in fire-prone areas, implement targeted mitigation measures, and strengthen resilience against potential losses.
For governments
Our models and tools can pave the way for public-private partnerships that deliver innovative and practical solutions to risk challenges. Future-proofing society requires a multi-stakeholder approach, as no single entity or silver bullet can address these complex issues alone. This is especially true for wildfire risk, where governments, municipalities, and insurers must collaborate to enhance early warning systems, improve land-use planning, and strengthen resilience in high-risk areas. Re/insurers’ expertise can be a catalyst for conversation and change, helping the public sector better understand exposure, allocate resources effectively, and develop proactive mitigation strategies.