What the LA wildfires show about climate change and the future of insurance

In this episode of the ESG Insider podcast we explore climate change and its implications for property insurance through the lens of the wildfires in Los Angeles. The fires that broke out in LA in January killed at least 29 people and destroyed or damaged thousands of structures. Early estimates from AccuWeather put the total damage and economic losses at more than $250 billion. "Climate change is not the only culprit here, but it is an accentuating factor that made this event and other events more severe than they would have been otherwise," says Terry Thompson, Chief Scientist in the Climate Center of Excellence at S&P Global. We also talk to Gavin Schmidt, Director of NASA's Goddard Institute for Space Studies, about why extreme weather events like wildfires are becoming more frequent and severe as the world warms. "We can prevent the situation getting worse by reducing, in the end to zero, carbon dioxide emissions," Gavin says. "There's really no practical other way to even stabilize the situation, let alone reverse it." And we hear how the insurance landscape is changing in an interview with former California Insurance Commissioner Dave Jones, who is now Director of the Climate Risk Initiative at UC Berkeley's Center for Law, Energy and the Environment. Dave explains that some property insurers are raising prices and declining to write or renew insurance in places that face rising losses from disasters like the LA wildfires. "The increase in price of insurance and the increased unavailability of insurance has significant economic consequences for households and businesses," Dave says. "Insurance is the climate crisis canary in the coal mine, and the canary is starting to expire." Listen to our episode about Canadian wildfires: https://www.spglobal.com/esg/podcasts/how-the-canadian-wildfires-impact-business-net-zero-health Want to get in touch? Email us at lindsey.hall@spglobal.com or esther.whield on@spglobal.com This piece was published by S&P Global Sustainable1, a part of S&P Global. Copyright ©2025 by S&P Global DISCLAIMER By accessing this Podcast, I acknowledge that S&P GLOBAL makes no warranty, guarantee, or representation as to the accuracy or sufficiency of the information featured in this Podcast. The information, opinions, and recommendations presented in this Podcast are for general information only and any reliance on the information provided in this Podcast is done at your own risk. This Podcast should not be considered professional advice. Unless specifically stated otherwise, S&P GLOBAL does not endorse, approve, recommend, or certify any information, product, process, service, or organization presented or mentioned in this Podcast, and information from this Podcast should not be referenced in any way to imply such approval or endorsement. The third party materials or content of any third party site referenced in this Podcast do not necessarily reflect the opinions, standards or policies of S&P GLOBAL. S&P GLOBAL assumes no responsibility or liability for the accuracy or completeness of the content contained in third party materials or on third party sites referenced in this Podcast or the compliance with applicable laws of such materials and/or links referenced herein. Moreover, S&P GLOBAL makes no warranty that this Podcast, or the server that makes it available, is free of viruses, worms, or other elements or codes that manifest contaminating or destructive properties. S&P GLOBAL EXPRESSLY DISCLAIMS ANY AND ALL LIABILITY OR RESPONSIBILITY FOR ANY DIRECT, INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL OR OTHER DAMAGES ARISING OUT OF ANY INDIVIDUAL'S USE OF, REFERENCE TO, RELIANCE ON, OR INABILITY TO USE, THIS PODCAST OR THE INFORMATION PRESENTED IN THIS PODCAST.