“We commend the CDI (California Department of Insurance) for calling on insurers to implement better ways to prevent and mitigate risk,” said Attila Toth, founder and CEO of Zesty.AI. “A healthy insurance ecosystem is paramount to keeping insurance widely-available in California and providing transparency around wildfire risk supports that goal.” (Credit: David Odisho/Bloomberg) “We commend the CDI (California Department of Insurance) for calling on insurers to implement better ways to prevent and mitigate risk,” said Attila Toth, founder and CEO of ZestyAI. “A healthy insurance ecosystem is paramount to keeping insurance widely available in California and providing transparency around wildfire risk supports that goal.” (Credit: David Odisho/Bloomberg)

Insurance companies operating in California must now recognize and reward homeowners and businesses that undertake wildfire mitigation efforts as part of the state’s Safer from Wildfires framework. As part of the regulations, insurers must provide discounts for mitigation efforts and provide wildfire risk scores to policyholders. The framework also includes a process for policyholders to appeal the risk score.

The regulations are the first of their kind in the U.S., according to California Insurance Commissioner Ricardo Lara. Insurance companies have 180 days to submit new rate filings that incorporate the wildfire safety standards established by the new regulations and develop a process for releasing wildfire risk determinations for residential and commercial policyholders.

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.

INCLUDED IN A DIGITAL MEMBERSHIP:

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?


NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Steve Hallo

Steve Hallo is managing editor of PropertyCasualty360.com. He can be reached at [email protected].  

More from this author

PropertyCasualty360

Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2024 ALM Global, LLC. All Rights Reserved.