July 2024

The destructive combination of megadrought, heatwaves and strong winds are fueling ever-more ferocious and deadly fires
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A hallmark of our changing climate is "weather whiplash" — the rapid and extreme oscillation between types of weather or climate conditions in relatively quick succession, such as intense rainfall followed by drought.

Weather whiplash is becoming more frequent, with jumps between extreme droughts and rainfall increasing sharply over the past 20 years. Weather whiplash is problematic for wildfires, as periods of heavy rainfall and vegetation growth followed by severe drought create ideal conditions for conflagrations.

Insights

  • In March 2024, the Smokehouse Creek Fire became the largest fire ever recorded in Texas. Just two months later, parts of the state were inundated with record-setting rainfall and flooding.
  • The destructive combination of megadrought, heatwaves and strong winds is fueling ever-more ferocious and deadly fires, as events in Canada, Chile and Hawaii have shown.
  • Industries operating in the urban-wildland interface, including agriculture, forestry, hospitality and utilities, are particularly vulnerable.
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The implications of fires are not just localized; they are often globalized in the case of some of the bigger events.
Steve Bowen, chief climate officer, Gallagher Re

 

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Disclaimer

CONDITIONS AND LIMITATIONS Gallagher's global operations, including a network of correspondent brokers and consultants, offers client-service capabilities in more than 130 countries around the world. This report and supporting information is not intended to provide legal or financial advice and reflects our understanding as of July 2024. It should not be regarded as a comprehensive statement of the law and/or market practice in the regions covered. You should not act upon information in this publication nor determine not to act, without first seeking specific legal and/or specialist insurance and risk management expertise. Should you require advice about your specific insurance arrangements or claim circumstances, please contact your Gallagher account representative.

© 2024 Arthur J. Gallagher & Co.