With the major reinsurers reeling from the estimated US$40 billion insured losses from the massive wildfires in Los Angeles in January 2025, an urgent reassessment of portfolios, rates and retentions is underway. Europe is the key focus, where reinsurers fear that the risks have been underestimated, a concern highlighted by the European Insurance and Occupational Pensions Authority which said recent trends show France, Greece, Italy, Portugal and Spain all have the potential to suffer annual economic losses of over US$2.5 billion from wildfires. Governments and regulators in Europe will be watching the response of the market in terms of availability and affordability of cover as they will not want to see the protection gap for catastrophe losses widen. A recent report said this was already at a level that was leading to talk of state intervention in Greece, Portugal, Croatia, Cyprus and Austria. This could take the form of joint public-private insurance schemes or obligations on insurers to take on wildfire risks if they want to operate in risk-prone regions.