California Wildfire Fund secures reinsurance advisor

Guy Carpenter and Company has been named as the sole reinsurance intermediary for the newly formed California Wildfire Fund (CWF) to provide strategic reinsurance and advisory services and develop its risk transfer and reinsurance strategy.

CWF was formed as part of the 2019 Wildfire Safety and Accountability legislation passed by the State of California this year and is currently being administered by the California Earthquake Authority (CEA).

CEA will work alongside Guy Carpenter to increase CWF’s longevity enhance its claims-paying capacity. CWF will also benefit from Guy Carpenter’s modelling partnership with AIR Worldwide for proprietary wildfire modeling data, and its exclusive license of the Tyche financial and capital modeling platform.

its modelling partnership with AIR Worldwide for proprietary wildfire modeling data, and Guy Carpenter’s exclusive license of the Tyche financial and capital modeling platform.

David Priebe, vice chairman of Guy Carpenter, cited the company’s focus on helping the public sector at the national, state and municipal levels. “By leveraging private capital for public risks and innovative tools, we are able to help public entities mitigate risk and improve their communities,” he said. “We are looking forward to bringing our public sector and wildfire expertise to deliver results for this very important initiative for the residents of California.”

Guy Carpenter represents 31 natural catastrophe pools globally. It said its 11 US property residual market clients collectively represented $7.7 billion of limit and 75 percent of the property catastrophe limit placed on behalf of US property residual markets in 2018.