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Delos Insurance Solutions Analyzes Wildfire Impact Post-LA Fires

On January 15, 2026, Delos Insurance Solutions shared a significant analysis reflecting on the catastrophic wildfires that struck Los Angeles in January 2025. As a property insurance managing general agent (MGA), Delos highlighted the vital lessons that emerged from this disaster and how they relate to wildfire risk assessment and insurance coverage.

In the aftermath of the wildfires, which collectively marked a year since their occurrence, Delos stressed that catastrophic fire losses are intrinsically linked not merely to the initiation of fires but to their ability to escalate beyond initial containment and incursion into urban territories. This understanding has paved the way for new opportunities within the insurance market, primarily for insurers, policymakers, and communities alike.

The analysis revealed that the Palisades and Eaton fires, which erupted during intense Santa Ana winds, transformed into widespread urban infernos, resulting in the destruction of over 16,000 structures. In contrast, the nearby Sunset fire, ignited under similar drought conditions but contained swiftly, thankfully managed to escape causing any structural devastation. Delos pinpointed that the variance in outcomes wasn't solely governed by weather conditions; rather, factors such as fuel continuity, landscape topology, and containment capabilities significantly influenced fire dissemination.

Kevin Stein, the CEO of Delos, articulated the company's perspective, indicating that understanding wildfire dynamics transcends mere ignition statistics. "These fires made it painfully clear that wildfire risk isn't about whether a fire starts — it's about whether the landscape allows it to become unstoppable," he elaborated. Stein further remarked that Delos’ focus is not merely a corporate mission statement; rather, it's an intensely personal endeavor for the team comprised largely of individuals who have experienced the chaos and uncertainty surrounding wildfires personally.

Delos’ innovative wildfire risk model regards fundamental physical characteristics that dictate fire behavior, such as fuel composition, ember production potential, wind direction, the accessibility of districts, and suppression potential. This approach starkly contrasts with traditional methodologies that often hinge on historical burn records or surface-level proxies. The effectiveness of Delos' model was showcased during the 2025 fires, as the company remarkably recorded zero wildfire losses across a portfolio of 25,000 policies, showcasing the efficacy of their groundbreaking approach to wildfire insurance.

In the wake of the fires, Delos fine-tuned its underwriting model, leading to the responsible expansion of insurance eligibility to roughly 270,000 additional homes across Southern California that other insurers had previously deemed uninsurable. Delos posits that nearly 50% of properties insured under the FAIR Plan, a state-supported insurance program, may now meet eligibility criteria for private coverage based on their rigorous underwriting practices.

Stein further emphasized that enhanced differentiation in risk will not only mitigate potential financial burdens on insurers but also broaden access to economical insurance options for homeowners, allowing public programs like the FAIR Plan to concentrate efforts on the highest-risk environments.

As the behavior of wildfires becomes increasingly unpredictable, Delos stresses the necessity for insurance models to be grounded in scientific principles of fire behavior, advocating the need for sophisticated approaches that stabilize insurance markets and foster the creation of resilient communities. Delos Insurance Solutions continues to exemplify innovation in the insurance landscape, committed to protecting communities forsaken by traditional insurance players due to wildfire fears.

In summary, through leveraging advanced technology paired with an acute understanding of wildfire dynamics, Delos retains its vision of making quality insurance accessible to homeowners while advocating for sustainable practices in wildfire management.