Landmark study shows rebuilding Los Angeles to wildfire safety standards could slash future fire losses

News: 2026 Press ReleaseFor Release: March 27, 2026Media Calls Only: 916-492-3566Email Inquiries: cdipress@insurance.ca.gov LOS ANGELES— A groundbreaking new analysis from the California Department of Insurance and the National Association of Insurance Commissioners (NAIC) reveals that rebuilding the communities destroyed by the January 2025 Palisades and Eaton fires to the IBHS Wildfire Prepared Home standard could reduce projected wildfire losses by one-third on average — a finding with transformative implications not only for Los Angeles but for every wildfire-threatened community in California. The results make a powerful case that the rebuilding of Los Angeles represents a decisive moment where science can be brought to bear to reset wildfire risk at scale and grow insurance options statewide. The study is the first to model how community-wide adoption of science-based building and landscaping standards in the Altadena and Palisades area affects Average Annual Loss (AAL) — a metric insurance companies rely on heavily when deciding whether to write policies in a given area. Importantly, the study reflects only the direct benefit of improved building and landscaping at the individual property level, without the amplifying effects on firefighting response or reduced home-to-home ignition. When an entire community rebuilds to higher standards, it disrupts the chain of ignition at every link, and the collective benefit is dramatically greater than the sum of individual upgrades. By buying time in a wildfire disaster, community-wide mitigation has the potential to avert the widespread devastation experienced over the past decade in Los Angeles, Redding, Santa Rosa, Paradise, and many other communities. View a presentation with the new data. Out of tragedy, an opportunity to build a more secure future The Palisades and Eaton fires together claimed 31 lives, destroyed over 16,000 structures, and upended life across the region – just the latest in a series of devastating wildfires across the state since 2015. Insurance Commissioner Ricardo Lara has put wildfire safety at the center of his Sustainable Insurance Strategy, the largest insurance reform in 30 years. Insurance companies now are required to write more policies in wildfire distressed areas and include the benefits of wildfire safety in rates. “As Los Angeles continues to rebuild, local leaders face a pivotal choice: reconstruct to the same standards that left communities vulnerable, or seize this moment to build back with proven, science-based protections that will safeguard lives, property, and insurance access for decades to come,” said Commissioner Lara. “Rebuilding with safety and insurability support our goal of increasing coverage options for all Californians.” A proven path: The IBHS Wildfire Prepared Home standard While better building on its own can make homes safer, combining it with defensible space can dramatically improve homes’ survivability. After the Camp Fire in 2018 destroyed Paradise,University of Californiaresearchers found that nearly 40% of homes built after 1997 survived, compared to 11% of homes built before that year. The data released today shows that meeting the IBHS Wildfire Prepared Home standard for the nearly 30,000 homes within the fires’ burn perimeters would reduce average losses by one-third over the homes in place before the fires -- a tremendous improvement with major implications for future insurability of the region. This is especially critical as wildlands where the Eaton and Palisades fires started will be regrown to critical fuel load within 10 years. The IBHS Wildfire Prepared Home (WPH) designation addresses roof protection, building features, and defensible space at two tiers: a Base level focused on ember defense and a Plus level that adds protection against radiant heat and direct flame contact. The Department of Insurance-NAIC study modeled the insurance impact of rebuilding the Palisades and Eaton fire zones to the IBHS standard. The results are striking: rebuilding to the WPH Base standard would reduce Average Annual Loss by 31 percent, and rebuilding to WPH Plus would achieve a 35 percent reduction. These findings carry enormous weight for insurability. Average Annual Loss is a central data point in insurance rates filings, and can be a factor in determining whether insurers will offer coverage in an area and at what price. A one-third reduction in projected losses above standard construction could mean the difference between a community trapped in the state’s insurer of last resort — the FAIR Plan, with its limited coverage and higher costs — and one served by a competitive private market with multiple carriers offering affordable policies. The science is strong: A systematic safety approach protects homes and lives Post-disaster research fromUC Berkeleyconfirms that homes survive wildfires when hardened building materials, defensible space, and vegetation management work together as an integrated sys