I_WMRC_2024A 07/18/2024 09:10:34 AM Committee Summary

The committee came back to order.

Commissioner Conway continued to review information about the Fair Access to Insurance Requirements (FAIR) Plan established by House Bill 23-1288. He reviewed additional information about House Bill 23-1174 concerning underinsurance and the reconstruction cost report that is due on April 1, 2025.

Commissioner Conway reviewed the community outreach and education the division is doing, including community and stakeholder meetings. He discussed the global reinsurance market. Commissioner Conway explained home hardening programs. He stated that nine states have these programs, including Alabama, Louisiana, Minnesota, and Oklahoma. Commissioner Conway explained how the division is learning about these programs.

Commissioner Conway discussed wildfire risk models, which are used by insurers to evaluate where to write business and the premiums they charge. He discussed the challenges with the homeowner insurance market and how mitigation is key. He reviewed the steps the division are taking to address the homeowner insurance issues, along with online resources that are available from the division.

Carole Walker, representing the Rocky Mountain Insurance Association, presented to the committee (Attachment C). She reviewed information about the association and data related to weather and climate disasters. She stated that Colorado is number two for hail damage and third for wildfire damage in the United States. Ms. Walker reviewed information about homeowners insurance becoming unaffordable in some states, which includes Colorado. She stated that Colorado's homeowners insurance premiums are 87 percent higher than nationwide. She reviewed information about the impact of rebuilding costs on homeowners insurance premiums, including materials and labor.

Ms. Walker reviewed information about insurance consumer impacts, including non-renewals and underinsurance concerns. She reviewed information about House Bill 23-1288, which created the FAIR Plan, which is an insurer of last resort. Ms. Walker stated the goal of the plan is to reduce risk and stabilize the private insurance market.

Ms. Walker and Dr. Cope responded to questions from the committee about the presentation, how the committee can address homeowners insurance, and how to communicate community goals.

Mr. Siddique continued to discuss the WUI Data Commons, including data collectors and data consumers. He reviewed information about the Paradise fire in California, including the impact of mitigation on homeowners insurance premiums. Mr. Siddique discussed industry data calls, which is part of a long-term strategy to gain more insight into the health of property markets at both the state and national level, and how they can be used by regulators and legislators to better understand the insurance market. He explained the catastrophic risk atlas and how it can be used to target mitigation funding.

The committee recessed.

The committee came back to order.

Campbell Hawkins, representing Black Hills Energy, presented to the committee the intersection with utility companies and wildfires. He discussed equipment maintenance and wildfire mitigation strategies. He mentioned the recently release wildfire mitigation plan released by Black Hills Energy.

Cody O'Neil, representing Holy Cross Energy, presented to the committee (Attachment G). He stated that Holy Cross Energy is a rural electric cooperative and provided data about Holy Cross Energy. Mr. O'Neil discussed the mitigation efforts by Holy Cross Energy, including weather awareness, relay settings, construction design, inspection and maintenance programs, and right-of-way management. He stated that a public safety power shut-off is a last resort mitigation tactic.

The panelists responded to questions from the committee about their presentations, including questions about PSPS events, topping tree practices, and the use of cameras to identify wildfires.

Mr. Whittington and Mr. Chard responded to questions from the committee about the presentation. Mr. Chard discussed the disparities in preparedness and technology throughout the state. He discussed the development of evacuation standards and assessments. In response to a questions, Mr. Whittington discussed community engagement efforts by Jefferson County about wildfire education.

The committee recessed.

Commissioner Marsha Porter-Norton, representing La Plata County, presented to the committee about wildfires. She discussed community wildfire protection plans, evacuation plans, and insurance issues. Commissioner Porter-Norton discussed using wood debris into housing materials. She explained the Wildfire and Watershed Fund and the community outreach for home assessments. Commissioner Porter-Norton discussed the need for mapping assistance and she discussed how stakeholders and community partners are working together to do wildfire mitigation and address other wildfire matters. She highlighted the concerns about homeowners and property insurance.

Commissioner Porter-Norton continued her presentation by discussing burn scars in La Plata County and how the county has partnered with the state to provide weather radar in the county. She discussed the need to provide grants to private companies that assist in wildfire matters, such as composting company that composts wood chip and getting resources out to smaller communities.

Commissioner Amy Mitchell, representing Park County, presented to the committee. She provided information about Park County population and county size. Commissioner Mitchell discussed how fire districts work land owners to address wildfire mitigation and the Landtender Program, which is a software program to help determine fire mitigation funding efforts and projects. She discussed the lack of market for biomass materials and funding assistance for homeowners for fire mitigation. Commissioner Mitchell discussed the challenges of obtaining homeowners insurance in Park County and addressing out-of-town recreators who are not fire knowledgeable.