U.S. Wildfire Risk Assessment Model Overview

This document is a technical report that presents a comprehensive analytic view of wildfire risk and the associated modeling methodologies. It outlines the significant impact of wildfires on properties, emphasizing the increasing importance of risk assessment for insurers and stakeholders due to rising development in vulnerable areas. The report details the U.S. Wildfire Model, which incorporates various factors such as hazard definitions, agents of damage, and local vulnerability functions. It explains the methodology used to quantify potential losses from wildfires, including the assessment of both burn and smoke damage. The model accounts for over 3.5 million stochastic events and utilizes detailed environmental data. Additionally, the report discusses the ignition sources, fire propagation dynamics, and the impact of fire suppression efforts. It also covers the financial modeling aspects, including insurance conditions and reinsurance contracts, providing a robust framework for understanding wildfire risks in high-risk states.