A new JPMorgan analysis estimates that global economic losses and insured losses caused by the deadly forest fires affecting Southern California is likely to be the costliest in the state’s history.

Insurance analysts at JPMorgan released a report on Thursday that looked at the exposure of property and commercial property lines of insurance in light of the wildfires that have devastated communities in the los angeles area, including Pacific Palisades and Altadena. At least five people have died in the fires and more than 2,000 homes, businesses and other structures have been damaged or destroyed.

The report noted that nearly 30,000 hectares have been affected by the fire and nearly 15,000 homes and buildings are considered to be at risk as of Thursday, up from 13,000 on Wednesday morning. Firefighters have struggled to contain the wildfires, which are being driven by strong Santa Ana winds.

“Economic loss expectations from the fires have more than doubled since yesterday to $50 billion, and we estimate that insured losses from the event could exceed $20 billion (and even more if not they control the fires),” JPMorgan analysts wrote. . “This would make this event significantly more severe than the 2018 Butte County Campfires, the largest insured wildfires in California history previously (with approximately $10 billion in insured losses).”

CALIFORNIA FIRES EXPERIENCING STATE AND FEDERAL RULES HINDING MITIGATION EFFORTS

Khaled Fouad (L) and Mimi Laine (R) inspect a family member’s property that was destroyed by the Eaton Fire on January 9, 2025 in Altadena, California. (Justin Sullivan/Getty Images/Getty Images)

“Insured losses in the Butte Camp Fire were nearly two-thirds of economic losses (about $15 billion). This event affected more than 150,000 acres and affected more than 18,000 homes/buildings,” he said the report

The 2018 Camp Fire devastated the town of Paradise and several nearby communities and caused 85 fatalities. It was caused by a downed utility transmission line during high winds.

CALIFORNIA FIRES: WHAT TO KNOW WHEN FILING AN INSURANCE CLAIM

Apartments in flames seen from the Eaton Fire in Altadena. (Jon Putman/Anadolu via Getty Images/Getty Images)

The JPMorgan report noted that the majority of insured damage and losses in the Camp Fire came from personal property losses, which accounted for 86 percent of losses compared to 12 percent for commercial property and 2 percent for the rest of the lines and car insurance.

Forest fires in progress Southern California are affecting larger population centers than the Camp Fire, and JPMorgan analysts expect insured losses to be larger as a result.

An Altadena resident walks away from his burning home in the Eaton fire. (Jon Putman/Anadolu via Getty Images/Getty Images)

GET THE FOX BUSINESS ANYWHERE CLICK HERE

“Although the current wildfires have not affected as much acreage or as many homes/buildings (so far), most of the damage is concentrated in the affluent Pacific Palisades area, which has high-value residential homes (median price of ‘housing >$3 million compared to <$500,000 in Butte County),” the analysts wrote.

“Furthermore, the fires have so far not been contained and continue to spread, implying that estimates of potential economic and insured losses are likely to increase.”