The recent wildfires across the Western U.S. have created an insurance crisis across several states. Homeowners are facing non-renewals and steep increases in insurance premium rates due to costly wildfires in 2017, 2018, and 2020. In turn, State Departments of Insurance and other state policymakers are being pressured to act.
Research by renowned organizations such as the Insurance Institute for Business & Home Safety (IBHS) and the National Institute of Standards and Technology (NIST) provides guidance on how to create more wildfire resilient communities. However, what is relatively unknown is whether these risk reduction actions are economically worth the effort and cost, or which features are the most important from a relative investment return perspective.
Download the white paper coauthored by The NAIC’s Center for Insurance Policy Research, RMS, and IBHS to explore the benefit-cost of wildfire resilience strategies in the Western U.S., and how economically effective wildfire risk reduction measures could be applied in the context of insured property exposures.
Get the White Paper