Slate Money The Dire Costs of the LA Fires
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Jan 11, 2025 Los Angeles faces its worst wildfire yet, with damages soaring to $50-60 billion, putting pressure on an already strained insurance system. Debate ensues over the ethics of using incarcerated individuals as firefighters amid climate challenges. Meanwhile, Meta shifts its content moderation policies, raising concerns about hate speech and its effect on advertisers. Lastly, New York City's new congestion pricing offers a glimpse into urban management strategies, drawing comparisons to successful models in London.
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LA Fires and Insurance
- The Los Angeles fires are causing massive damage, estimated in billions of dollars.
- This will likely lead to significant issues for the insurance industry and potentially the end of private fire insurance in California.
Insuring Wildfires
- Insuring against mass events like wildfires is different from insuring against individual events like burglaries.
- Wildfires create significant tail risks for insurers due to the potential for widespread, simultaneous damage.
Prison Firefighters
- Thousands of California firefighters battling wildfires are prisoners, earning low wages.
- Their risk of injury or death is higher than regular firefighters, yet their training is significantly less.