Allianz Commercial has released a report emphasizing the increasing threat of wildfires globally. The report highlights how climate change, human activities, and evolving land use patterns have led to more frequent and severe wildfires. This trend poses significant risks across various sectors worldwide.
The western United States, along with regions like western Canada, southern and eastern Australia, and southern Europe, are identified as highly vulnerable to wildfires. Recent incidents in previously low-risk areas such as northern Canada, Scandinavia, and Russia underscore the expanding threat. South Korea experienced its deadliest wildfire outbreak in history during March and April 2025.
Wildfire seasons are extending, complicating resource sharing for firefighting efforts. The report notes that catastrophic wildfires have grown larger and more frequent over the past decade, causing unprecedented property damage and fatalities.
Climate change is exacerbating these risks by increasing fuel loads and promoting conditions conducive to fires. The ten warmest years since 1850 occurred between 2015-2024, with 2024 being the hottest on record.
The expansion of human development into fire-prone areas increases exposure to wildfires. Utilities, energy sectors, real estate, construction, agriculture, and transportation face heightened risks of damage and business interruption due to their proximity to ignition sources like electricity lines.
Michael Bruch from Allianz Commercial advises businesses to assess their wildfire risk potential and develop comprehensive management plans. Strategies include creating defensible spaces around properties and using non-combustible materials in construction.
Technological advancements offer tools for modeling fire risk through seasonal forecasting, drone surveys, GIS mapping, thermal imaging systems, vegetation management systems, and AI cameras.
The report concludes that mitigating wildfire impacts requires coordinated efforts at local to global levels. This includes compliance with fire safety regulations by companies as well as broader initiatives like reducing greenhouse gas emissions and investing in advanced fire detection technologies.