New data shows wildfires inflicting record economic damage worldwide

Wildfire disasters becoming more severe globally

Wildfires are becoming more frequent, deadly and costly worldwide, according to a new study from the University of Tasmania published in the journal Science.

Researchers found that more than 43% of the costliest wildfire disasters since 1980 occurred in the past decade.

The study examined the 200 most damaging wildfire events relative to national gross domestic product (GDP), using data from the University of California, Merced, and insurer Munich Re.

Calum Cunningham, Research Fellow at the Fire Center at the University of Tasmania, said: “We’re now seeing societal effects of fire that are much larger than ever before, fueled by climate change.”

Billion-dollar wildfire events concentrated in past decade

The analysis identified 43 wildfire events since 1980 that generated direct losses of $1 billion or more.

Over half of those billion-dollar fires occurred in the past ten years.

Most of the costliest events were recorded in North America, where higher-value infrastructure and expanding urban development near wildlands increased exposure to loss.

According to the US Fire Administration, more than 60,000 communities in the US are now located in these at-risk zones.

The researchers noted that the frequency of billion-dollar fires has accelerated in parallel with worsening drought conditions and hotter temperatures.

Rising human impact and gaps in disaster planning

The study found that the frequency of deadly wildfires has increased alongside economic losses.

Cunningham said: “Fire disasters are not only influenced by climate change. They are also influenced by the way we manage built and natural environments.”

Researchers identified gaps in disaster adaptation, including communication and evacuation planning, as factors that continue to contribute to loss of life.

The study highlighted several high-impact fires from the past decade, including the 2016 fires in Canada, the 2017 California fires and the 2018 Camp Fire in Paradise, which killed 85 people and caused about $16 billion in losses.

In 2020, California wildfires produced an estimated $100 million in emissions damages.

The 2023 Lahaina fire in Hawaii killed 102 people.

The researchers noted that several recent events, including the 2024 Valparaiso fires in Chile and the early 2025 Los Angeles wildfires, were not included in the main dataset.

Cunningham said the Los Angeles fires were “literally off the charts,” generating around $65 billion in direct losses, more than double any previous wildfire disaster.

Relevance for fire and safety professionals

The findings provide updated evidence for fire and emergency management agencies, policy-makers and planners working on risk assessment, urban interface design and disaster readiness.

Understanding that nearly half of the world’s costliest wildfire events occurred in the past decade highlights the scale of adaptation needed to protect life and infrastructure.

For emergency managers and local authorities, the study reinforces the importance of coordinated evacuation planning, clear public communication and investment in community fire prevention systems.

Urban planners and building engineers can draw from the analysis when designing developments in wildland–urban interface areas where high-value assets and populations are most exposed.

The data also offers a basis for insurers and risk assessors to quantify emerging patterns of loss and support evidence-based policy responses.

This article was informed by information from the following source: Bloomberg