Best’s Commentary: Losses in Washington Wildfires Expected to be Sizable

• August 05, 2026 01:43 PM (EDT)

    

//BestWire// - AM Best expects insured losses from the ongoing wildfires in and around Spokane, WA, to be considerable, with more-concentrated individual insurers likely to be more negatively impacted.

In its Best’s Commentary, “Insured Losses in Washington, Spokane-Area Wildfires Expected to be Sizable,” AM Best notes that ultimate insured losses will depend largely on the coverage secured by homeowners and the level of protection obtained by business owners. Demand surge and ongoing inflationary pressures also may drive up insurance claims-related costs.

Three major wildfires, together called the Complex Fire, to date have burned over 10,000 acres, destroying more than 700 homes and forcing the evacuation of approximately 65,000 people. At its current damage level, the losses do not appear to be in the same order of magnitude as the 2025 California wildfires and likely will have minimal impact on the current softening prices in the reinsurance market; however, there could be a reassessment in localized areas and where reinsurers feel they have to re-evaluate some of their models.

“In the longer term, depending on the magnitude of the insured losses, primary insurers with a concentration of their homeowners’ or commercial property portfolio in areas within Washington state may re-examine their appetite for wildfire risk given how unpredictable they can be with respect to location, intensity and seasonality,” said David Blades, associate director, Industry Research and Analytics, AM Best.

To access the full copy of this commentary, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=367231.

Property And Casualty Insurance Washington Press Release A.M. Best Rating Services, Inc. Fire Insurance Property And Casualty Insurers