3D3D8810B5186D5C87258A2F00585F25 Hearing Summary CLICS/CLICS2023A/commsumm.nsf PUBLICBILL SUMMARY For INSURANCE INSTITUTE FOR BUSINESS & HOME SAFETY PRESENTATIONINTERIM COMMITTEE WILDFIRE MATTERS REVIEW COMMITTEEDate 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.