Overview

• State draft reports say insured property losses from the Jan. 7 Eaton fire could reach $15.2 billion, with total damages estimated at up to $45 billion by a UCLA study.
• Assembly Bill 1054 allows Southern California Edison to settle fire lawsuits and be reimbursed by the state fund, prompting concerns that the utility lacks incentives to limit payouts.
• The seven-member California Catastrophe Response Council will meet Thursday to examine options such as extending a $3 monthly surcharge and capping attorney fees to shore up the fund.
• Edison announced plans to launch a Wildfire Recovery Compensation Program this fall to expedite payments to fire victims, even as its equipment remains under investigation.
• Wall Street hedge funds are buying insurers’ subrogation rights against Edison, betting on profits from future reimbursements and intensifying scrutiny over claim priorities.