Property general agency (MGA) Delos Insurance Solutions and ROAR Partners, an investment advisory firm specializing in pre-disaster risk mitigation, have entered into a strategic partnership to provide complete disaster risk exposure strategies for wildfire-prone areas in California and the United States.
The joint initiative will focus on three key areas: identifying areas with lower development risks, building multi-stakeholder coalitions to reduce wildfires, and providing comprehensive investment, finance and insurance solutions.
Delos explained that from 2020 to 2025, California will become an “insurance desert.” The Los Angeles wildfires in January 2025 were a critical stress event, causing total economic losses estimated at $150 billion to $275 billion.
It is estimated that private insurance covers only $40 billion, leaving a protection gap of more than $110 billion with serious consequences. These include one in five homes in high-risk areas lacking private insurance and an estimated $1.57 billion loss in tax revenue due to reduced business activity.
Los Angeles County is expected to lose $4.7 billion to $8.9 billion in economic output by 2029, resulting in the loss of up to 53,000 jobs.
Similar challenges face the Pacific Coast, U.S. mountainous and southwestern states, which often experience continuous disasters in succession, with cascading consequences of drought, high winds, flash floods and seasonal fires.
With little time to prepare, ROAR Partners’ future-proofing US framework focuses on the theme of “in lieu of loss” and is designed to catalyze reinsurance and other industries to reach higher levels of pre-disaster resilience investment.
“Delos is committed to improving access to homeowners insurance in areas threatened by wildfires. This partnership with ROAR demonstrates our commitment to doing everything we can to work with stakeholders and communities to achieve this goal,” said Delos CEO Kevin Stein. “I believe working with the ROAR team on the ‘Future-proofing America Framework’ and other important initiatives will help change the situation for homeowners.”
Delos, along with ROAR and other partners, is furthering the Future-Ready America Framework by implementing its three-pillar strategy: risk identification and site selection, construction phase protection, and post-construction coverage.
To ensure long-term affordability and market stability, the partnership works to promote the integration of specialized financing models, such as those emerging in California and across the country.
The Delos-ROAR collaboration aims to align insurance with modern AI-driven forecasting and move away from outdated historical data.
This strategic partnership aims to reclassify “low-risk” homes currently trapped in programs like California’s Fairness Plan to restore property values, protect the tax base in wildfire corridors, rebuild reinsurance confidence, and accelerate disaster recovery nationwide.
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