The wildfires that have ravaged Los Angeles in the United States are expected to cause damage of over US$135-billion.
Preliminary estimates say costs could be between US$135-billion and US$150-billion.
Thousands of structures have been destroyed with a number of people also dying in the fires.
The disaster is also likely to be a severe blow to the American insurance industry. In recent years insurance companies have been either refusing to insure people or hiking premiums, often because of the increased risk of natural disasters, such as fires or floods.
Denise Rappmund, an analyst at Moody’s said: “Increased recovery costs will likely drive up premiums and may reduce property insurance availability.”