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3D3D8810B5186D5C87258A2F00585F25 Hearing Summary




PUBLIC
BILL SUMMARY For INSURANCE INSTITUTE FOR BUSINESS & HOME SAFETY PRESENTATION

INTERIM COMMITTEE  WILDFIRE MATTERS REVIEW COMMITTEE
Date Sep 19, 2023      
Location Old State Library



Insurance Institute for Business & Home Safety Presentation - Committee Discussion Only
10:05:49 AM  
Carole Walker, Executive
Director, Rocky Mountain Insurance Association (RMIA), introduced the RMIA
and explained how the organization represents many of the insurance providers
in Colorado. She gave a presentation on the insurance availability and
affordability issues from the perspective of insurance companies.



Their presentation can be found here: https://leg.colorado.gov/sites/default/files/images/rmia_presentation.pdf
10:10:11 AM  
Director Walker discussed
the increase in natural disasters across the nation and how consequently,
the amount that insurance companies have paid out increased to record highs.
She explained that Colorado has had the second highest increase in the
occurence of natural disasters and the impact that has had on re-insurance
costs.
10:19:33 AM  
Director Walker responded to questions from the committee on the efficacy of mandating insurance discounts for homeowners who have pursued mitigation efforts. She explained that a mandate would cause more uncertainty, which could dissuade insurance companies from providing coverage in the state.
10:22:34 AM  
Dr. Ian Giammanco,
Managing Director of Standards and Data Analytics, Insurance Institute
for Business & Home Safety, gave a presentation on the organization
and discussed their goal to test the effectiveness of potential mitigation
efforts for wildfires and other natural disasters.



Their presentation can be found here: https://leg.colorado.gov/sites/default/files/images/bending_down_wildfire_risk.pdf
10:29:11 AM  
Dr. Giammanco discussed
the conditions that create a high wildfire risk and how mitigation efforts
differ depending on the environment. He also discussed the critical actions
for wildfire mitigation, which include a Class A fire-rated roof and defensible
space.
10:44:01 AM  
Dr. Giammanco discussed the need to find ways to nudge people implement wildfire mitigation measures in their homes due to the risk that a single unprepared home can pose to the rest of the community during a fire. He explained that incentives alone will not work.
10:46:55 AM  
Director Walker and Dr. Giammanco responded to questions from the committee on the practices to persuade individuals to pursue wildfire mitigation that have worked the best in other communities. Dr. Giammanco used communities from Mobile, Alabama as a good example of an area that bent down the extreme weather risks facing their community and described the grant program and local code changes used there.
10:56:30 AM  
Director Walker responded
to questions from the committee on the merits of legislation aimed at homeowners'
associations (HOAs) and the need for insurance providers to give incentives
to homeowners for mitigation efforts.






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