Quantifying Avoided Loss to Hard Infrastructure from Hazardous Fuels Reduction

The risk of wildfires continues to rise in North America. Over 7.3 million acres of land burnt in 2020 alone, while three of the last six previous seasons reached over 10 million acres burnt. The combination of dense stands of trees resulting from over a century of fire suppression, drier conditions due to climate change, and housing built within wildland-urban interface areas are placing severe pressure on affected areas, firefighting resources, and insurers.

Partnering with the American Forest Foundation, Moody's RMS utilized its U.S. Wildfire model to quantify how forest treatment mitigation and resiliency measures can lower the wildfire risk. In this report you will learn how:

• Different mitigation measures can reduce average annual losses and the typical payback time to recoup wildfire investment.

• Forest treatment measures such as removing vegetation close to properties, can make insurance risk more affordable.

• Various forest treatments over time can lead to positive Net Present Value