On Thursday, the California Department of Insurance (CDI) announced that they have completed their review of the first forward-looking wildfire risk model for use by insurers in setting rates for property insurance. The Verisk Wildfire Model underwent a six-month review process and has been approved for use by insurance companies to assign risk. The approval of the model opens the door for rate-setting based on the model’s outcomes; however, companies that use the model must commit to writing policies in “distressed areas” of California as outlined in the Sustainable Insurance Strategy.
For details, visit the CDI website. Contact RCRC Senior Policy Advocate Staci Heaton for more information about Wildfire Risk Modeling.