Idaho insurance director warns wildfire losses, PBM oversight and high‑risk pool shape market; agency seeks staff and equipment

The Idaho Department of Insurance told the Joint Finance‑Appropriations Committee on Tuesday that a tightening reinsurance market, rising wildfire losses and ongoing pharmacy benefit manager (PBM) compliance work are straining insurers and could lead to higher premiums or nonrenewals for some homeowners.

Director Dean Cameron described a multi‑pronged budget request that includes an actuary, a regulatory compliance specialist, compensation increases for the State Fire Marshal’s office and one‑time capital outlay for equipment and vehicles. The department also reported implementation activity tied to last year’s PBM reform (House Bill 596) and defended the high‑risk reinsurance pool several committee members credited with stabilizing health insurance rates.

Why it matters: Director Cameron said wildfire losses and national catastrophic events have contributed to a hardening property market and higher reinsurance costs that ripple into Idaho, causing some carriers to reduce market exposure or stop writing coverage in higher‑risk areas. The department proposed legislative tools to help homeowners harden properties and to create a pool that could both fund mitigation and help carriers remain solvent.

Key budget and program details presented to JFAC included: - The Department of Insurance currently has 75.5 approved full‑time positions (63.5 in insurance regulation; 12 in the State Fire Marshal). - The department reverted just under $2,200,000 of its FY2024 appropriation (about $917,000 personnel and $1,277,000 operating) and historically spends 70–80% of appropriation levels. - FY2026 enhancement requests include: one staff actuary ($201,900, mostly ongoing), one regulatory compliance specialist (salary budgeted at $41.03/hr at 80% of policy for pay grade O), compensation increases for the State Fire Marshal (about $48,100 ongoing), and $162,200 in one‑time capital outlay for protective gear, cameras and two medium‑duty pickup trucks (including $136,000 for trucks). - The department received a trailer appropriation to implement House Bill 596, which amended "section 41, 3 49 of Idaho code" (transcript phrasing) and provided one FTP and $132,400 for PBM reporting and related work.

On PBMs and enforcement: Director Cameron said the department has hired an analyst for PBM oversight and has received required data submissions from most PBMs; some have not yet complied and the department is working to obtain their data. He described a wide range of complaints and said the department is building a structured complaint intake and reporting process. "She's receiving numerous complaints," Cameron said of the new staffer, and the department expects to provide a fuller report as PBM data collection continues.

On wildfire impacts and mitigation: Cameron said Idaho burned just under a million acres in the recent season and that the department recorded more than 140 structures lost — about 40 residences. He said carriers are tightening underwriting and purchasing more surplus‑lines coverage, which offers fewer consumer protections. Cameron said the department will propose legislation to create a pool that would help homeowners harden properties (for example, clearing combustible vegetation and replacing vulnerable materials) and could also function as a mechanism to help carriers manage catastrophic risk.

Committee members asked whether regulatory limits or rate‑approval policies in Idaho were driving carriers away. Cameron said the market tightening is driven largely by national catastrophe losses, reinsurance cost increases and inflationary pressure, not by Idaho rate‑approval practice. He added that the department requires carriers to justify rate increases and that the agency is watching nonrenewals and solvency concerns closely; he said Idaho had faced three carrier insolvencies in the previous year.

The department introduced several staff members during the hearing, including Deputy Director Wes Trucksler, Public Information Officer Julie Robinson and fiscal officer Lisa McIntosh.

No formal vote occurred on Tuesday; legislators asked for additional details on PBM complaint volumes, compliance status of PBM data submissions, and specifics about the proposed mitigation pool and the department’s cost/benefit analysis for the requested positions and capital items.

Director Cameron closed by thanking committee members for their work and saying the department stands ready to provide more data and testimony as the budget process continues.