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House passes bill requiring greater transparency from insurers on wildfire risk models
Summary
Lawmakers approved House Bill 11-82 to increase transparency about wildfire risk scores used by insurers, require disclosure of mitigation discounts and provide consumers access to model information; sponsors said the measure aims to help homeowners target mitigation and access insurance.
The Colorado House passed House Bill 11-82 on March 19, a measure that directs insurers to disclose aspects of wildfire risk scoring and how mitigation measures affect underwriting and pricing.
Why it matters: Lawmakers and witnesses described rising wildfire risk and disparate insurer risk scores that confuse homeowners. Sponsors said the bill promotes consumer transparency, helps homeowners direct mitigation efforts where insurers will recognize them, and protects the availability and affordability of homeowners insurance.
What the bill requires (as described on the floor): Sponsors said insurers must provide information to policyholders and the state about the models used to calculate wildfire risk scores and, where applicable, disclose discounts tied to mitigation actions. The bill was amended in committee to remove reinsurers from the reporting requirement, to push the effective date to July 1, 2026, and to allow proprietary modeling information to be treated as confidential by the insurance commissioner when appropriate. The amended bill also narrowed some commercial coverage provisions to focus on properties that include multifamily residential housing.
Floor debate and rationale: Representative Tatone (committee and floor sponsor) and Representative Brown (co-sponsor) described the bill as a transparency and consumer‑protection measure. “These tools would help result in more accurate predictions of wildfire risk scores by incorporating relevant mitigation efforts,” Representative Tatone said during floor remarks. Representative Brown noted Marshall Fire impacts in his district and said the law will help homeowners seeking affordable coverage.
Committee actions and votes: Business Affairs and Labor and the House Appropriations changes were reflected in committee reports. Committee amendments L006 and L007 (technical/data-focused amendments requested by industry and to carve out certain commercial classes) were adopted before the committee report passed on the floor. The House later passed HB11-82 on final consideration.
Next steps: The bill was passed by the House and will proceed to the Senate. Sponsors said an effective date delay was negotiated to give insurers time to adjust systems and for regulators to adopt implementing rules.
