Report Asks Washington Lawmakers to Require Insurers to Better Track Wildfire Risk

A working group on wildfires in Washington wants the state Legislature to consider requiring insurers to internally track instances in which wildfire risk materially contributes to a policy nonrenewal, cancellation or eligibility determination—and to better explain wildfire risk scores.

The Wildfire Mitigation and Resiliency Standards Work Group, co-chaired by Washington Insurance Commissioner Patty Kuderer and Commissioner of Public Lands Dave Upthegrove, delivered its final report and recommendations to the Legislature this week.

The report recommends establishing a voluntary grant program to help residential properties resist wildfire loss. Work group members also agreed on the need to enhance mitigation at the community level, improve data sharing between state agencies and the insurance industry, and improve risk transparency for consumers.

Substitute House Bill 1539 established the work group to study and make recommendations on wildfire mitigation and resiliency standards. Members included representatives from state agencies, the insurance industry, fire services, local governments, Tribes, utilities, landowners and non-profits.

The group met in July and August to hear presentations from fire, mitigation and insurance experts from across the country. Recommendations from the group include:

• The group recommended expanding DNR’s Community Resilience program, with additional campaigns to encourage participation.
• The group agreed on the importance of coordinating wildfire hazard, risk and mitigation data among state agencies, local entities and the insurance industry, and offered three recommendations to improve data sharing capabilities.
• The group made three recommendations on improving consumer transparency for wildfire hazard and risk: 1. Consider requiring insurers to track instances in which wildfire risk materially contributes to a policy nonrenewal, cancellation or eligibility determination. 2. Consider requiring insurers to share wildfire risk scores, and a clear explanation for those scores. 3. Consider developing a consumer education program to explain wildfire risk assessment methods and connect homeowners with available funding or technical assistance programs.

Topics Catastrophe Natural Disasters Carriers Legislation Wildfire Washington