Louis A. Gritzo

Wildfires are increasingly out of control, both physically and financially. …Since 2010, at least three years have seen 10 million U.S. acres burn. And the loss per burned acre is increasing. …Wildfire, combined with drought and heatwaves, has become the U.S.’s second-most-costly category of natural catastrophe in terms of insured loss. This cost increase stems from a variety of factors. The character of ongoing development is a major factor. Continued development without consideration of wildfire hazard, or without designing in protection and defenses, puts homes and business in harm’s way. …If losses continually outstrip premiums, insurers’ only options are to raise rates and deductibles or withdraw from providing coverage in wildfire-prone areas. …A purely financial solution shows no signs of being viable, so it’s time to think differently and join forces with a broader group of stakeholders to develop the knowledge and innovations needed to manage the wildfire hazard. [Access to the full story may require a subscription to Forbes Magazine]