Download or read book How Wildfires are Affecting the Insurance Market in California written by Ayooluwatomiwa Ogunrombi and published by . This book was released on 2021 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: As climate change persists, we see an increase in the number and severity of wildfires, especially in Western United States. The impact on the insurance market is clear as we see insurance become more expensive and difficult to find for many Californians, especially those living in high wildfire risk areas. This is not an unusual result. If an insurance company believes that insuring a specific peril is too risky and has a higher probability of resulting in a loss than a profit, they will either not insure it at all (as is the case with uninsurable perils) or they will make the premiums for this insurance product very high. So, what does the future of wildfires in these high-risk areas look like and how can we prepare for the various ways that insurance companies might react to the threat of increasing wildfires? In this study, historical data including structure data, wildfire data, insurance data, and weather data are used to analyze the trend in the number and severity of wildfires. Using analysis methods such as Poisson regression, linear mixed models, and graphs, conclusions about how we can expect insurance companies to respond to wildfire risk can be made. To narrow down the study, only the top counties identified by the California Department of Insurance as having the highest exposure to wildfires will be focused on and these include Tuolumne, Trinity, Nevada, Mariposa, Plumas, Alpine, Calaveras, Sierra, Amador, and El Dorado.