State authorities previously listed the Palisades as one of the five Southern California areas with the highest concentration of potential wildfire risks. The community also is among the areas most impacted by an unavailability of insurance coverage.

The once hot insuretech sector fell out of favor a few years ago. Given the scope of the current disaster though, it's not clear what role the VC-backed startups could have played.

The state’s insurance industry was reformed in late 2024 to promote coverage in disaster-prone areas. Tens of billions in fire damage will stress-test the new regime.