Insurance officials urge certified home hardening, state programs to reduce wildfire losses

Brian Powell of the National Association of Insurance Commissioners told the committee that insurance markets are reacting to wildfire and severe‑convective risk and that proven mitigation standards can reduce losses and keep insurance affordable and available. He described two IBHS products tested nationwide: Fortified (wind/hail) retrofit tiers and the Wildfire Prepared home and neighborhood standards. Both include third‑party verification to ensure retrofit quality.

Powell said NAIC provides technical support, actuarial tables for mitigation discounts, catastrophe modeling and economic benefit‑cost analyses to help states structure mitigation grants and insurer discount programs. He cited Alabama’s long‑running Strengthen Alabama Homes program as a model and offered NAIC help to craft legislation, mitigation‑discount tables and a benefit‑cost case for Montana. Powell also invited legislators to an IBHS laboratory tour and training day NAIC sponsors.

Committee members asked whether mitigation discounts and certificates could be implemented by bulletin or require legislation; NAIC said some states use department rulings while others passed laws depending on commissioner authority. Lawmakers signaled interest in exploring mitigation discounts, grant pathways and parcel‑level targeting of projects.