Among other things, there are indications that a warming climate causes snowmelt to occur earlier in the year and proceed more rapidly, extending the time and area for dry tinder to develop. That condition is further aggravated by prolonged droughts, which are also attributed to climate change. Wildland fires may even be contributing to the climate conditions that create them. The insurer Allianz reports that “fires themselves are now contributing to the rise in greenhouse gas emissions” and that “some fires are even creating their own weather systems, making winds more erratic and conditions too dangerous for firefighters to protect people and properties.”5 Yet the US Department of the Interior notes that as many as 90% of U.S. wildland fires are caused by PAGE 2 Wildfire: A Fearsome but Manageable Peril Continued humans. It follows that the incidence of wildland fires can be reduced by regulating human behavior, and that vigorous management of natural fuel loads can reduce wildfire severity.6 An “Interdependent” Risk More to the point for property owners, however, the effects of wildfire on areas occupied by humans can be controlled by individual and collective efforts that are not as costly as those needed to address other hazards, and don’t require efforts as far-reaching as addressing climate change. Verisk Analytics, a leading provider of risk information to property/casualty insurers, identifies four key factors to determining a property’s exposure to wildfire loss: vegetation in the vicinity, road access to the location, the nature of the terrain, and a structure’s susceptibility to wind-borne embers.7 Other than terrain, these factors can be managed by humans individually or at the level of a local community. Vegetation can be cleared, roads can be built or extended, and vents can be installed to repel embers. Howard Kunreuther, a well-known scholar of risk at the Wharton School, refers to wildfire as an “interdependent risk” in that one property owner’s level of risk is highly dependent on the risk mitigation measures implemented (or not) by nearby property owners. “The behavior of others is not necessarily the primary barrier preventing individuals from adopting sufficient mitigation measures,” he writes, “[but] it does influence the insurability and the affordability of wildfire.”8 PROTECTING YOUR PROPERTY ® 512.328.1851 | benekeai.com Sheila E. Salvatore, Editor | Editor@AdjustersInternational.com Copyright © 2020 Adjusters International, Ltd. All Rights Reserved. E15-1022 Insights for Your Industry® is published as a public service by Adjusters International, Ltd. It is provided for general information and is not intended to replace professional insurance, legal and/or financial advice for specific cases.
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