Investing.com — BlackRock Inc (NYSE: ).CEO Larry Fink predicted that recovery from the recent wildfires in Los Angeles could take up to a decade. The fires, which have been active for a week and are still largely out of control, caused extensive damage, leading to reviews of homeowners’ insurance policies for the next four years.
Fink, who himself was born in Los Angeles, said during an interview with CNBC that these fires could require a redefinition of risk from events in various parts of the country. He emphasized that home insurance is increasingly becoming an important aspect of home ownership, especially in light of such large-scale destruction.
The BlackRock CEO’s comments came after the company reported fourth-quarter earnings on Wednesday. He pointed out that forest fires not only destroyed entire neighborhoods, but also key infrastructure, schools and supermarkets. Fink stressed that recovering from such widespread damage is not a quick fix, predicting a recovery period of five to 10 years.
Insurance losses from wildfires are currently estimated at as much as $40 billion. The National Weather Service warned that parts of Los Angeles and Ventura counties would continue to face “extreme fire danger” through at least Wednesday afternoon local time. However, conditions are expected to improve slightly on Thursday as the winds shift. The forest fires have caused at least 24 deaths and have burned down entire settlements.
Describing the ongoing fires as “terrifying to watch,” Fink’s predictions underscore the long-term implications of these devastating wildfires for homeowners and the insurance industry.
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