Wildfire season typically runs from early April through to the beginning of autumn but varies substantially by region, with California and the Western US being the most significantly impacted. High temperatures, low humidity, and seasonal winds increase wildfire risks.
Guidewire’s data uses more than 1,000 data points and HazardHub risk scores for climate risks and extreme weather events. According to the Guidewire HazardHub Enhanced Wildfire Risk Score, Nevada, Oregon, California, Idaho, and Wyoming are the states with the greatest risk for wildfires. The results are based on the percentage of homes receiving the highest rating for wildfire risk, “F”. The database applies granular geographical data, updated vegetation data, proximity to fire hydrants and fire stations, historical wildfire data, and environmental factors to provide a detailed and accurate assessment of wildfire risk.
The adoption of even minimal measures can reduce a consumer’s risk by 20%. Guidewire states that more extensive measures can reduce the risk by up to 70%.
Guidewire HazardHub was also able to provide wildfire risk data and maps for all 50 states and Canadian provinces. Historical wildfire data consistently shows that the most significant and destructive wildfires tend to occur in the Western US. Over the past decade (2014-2023), California has experienced an average of 203 significant wildfires per year. In 2023 alone, the state saw a total of 7,127 wildfires of any size, according to CalFire, with 329 classified as significant by the Wildland Fire Interagency Geospatial Service (WFIGS).
Texas is another US state prone to a high number of wildfires. Due in part to its large size, these fires tend to occur in more rural areas, resulting in a lower concentration of risk and fewer homes exposed compared to other Western states like California, Oregon, and Nevada, according to analysts.
Tammy Nichols Schwartz, CPCU and Senior Director of Data and Analytics at Guidewire, commented on the importance of mitigating wildfire risk: “Efforts such as creating a defensible space, and retrofitting homes with fire-resistant materials, windows, and vents can boost a home’s resilience by as much as 40% and help make insurance more affordable. Proactive mitigation is essential for safeguarding homes and contributing to a more resilient community and future.”
Insurers can access data and risk scores through the Enhanced Wildfire Score and HazardHub via Guidewire’s apps, including PolicyCenter and InsuranceNow, and through the HazardHub API.
