Idaho insurance director reports wildfire pressure on market, PBM oversight under way; agency seeks actuary, fire marshal pay and equipment funding

The Idaho Department of Insurance told the Joint Finance‑Appropriations Committee on Jan. 21 that wildfire losses and nationwide catastrophe costs are tightening property insurance markets and prompting the agency to seek targeted budget increases to support rate review, compliance work and fire prevention efforts.

Noah Peterson, budget and policy analyst with the Legislative Services Office, summarized the department’s request for fiscal 2026, which includes a staff actuary (one ongoing FTP and $201,900 total, mostly personnel), a regulatory compliance specialist to provide internal legal and policy support, a $48,100 ongoing compensation increase for the state fire marshal and deputies, and $162,200 in one‑time capital outlay for replacement equipment including turnout gear, cameras and two medium‑duty pickup trucks.

Dean Cameron, director of the Department of Insurance, told the committee that premium tax distributions and a high‑risk reinsurance pool have helped stabilize individual market rates and attract carriers, but that recent nationwide catastrophes and inflation have strained the property market. “We started seeing forest fires in California, Oregon, Colorado and it started a tightening of the property insurance market,” Cameron said, adding that reinsurance costs have risen and some carriers are reducing or exiting business in parts of the state.

Cameron described losses in Idaho this year: the department tracked nearly 1 million acres burned statewide and reported more than 140 structures lost, including roughly 40 residences. He said agents increasingly place homeowners into the surplus lines (non‑admitted) market, which offers fewer consumer protections and can be more volatile.

The director described a legislative proposal the department is preparing that would create a pool with two functions: financial assistance to help homeowners harden homes and vegetation management to reduce wildfire risk, and a mechanism to help insurers remain in the Idaho market by spreading catastrophic risk.

On pharmacy benefit manager oversight, Cameron said implementation of last year’s PBM reform, enacted in House Bill 596, took effect Jan. 1. The department hired an analyst to handle complaints and to collect data from PBMs. “Most have complied and have submitted their data,” Cameron said; he added some PBMs have not yet submitted data and the department is working with them. He said complaints range from unpaid dispensing fees to contract and responsiveness issues, and that a fuller report will be provided to the committee as the department compiles data.

Peterson provided fiscal context: the Department of Insurance has 75.5 approved FTPs (63.5 in insurance regulation and 12 in the state fire marshal), and reverted about $2.2 million in fiscal 2024—approximately $917,000 from personnel and $1,277,000 from operating expenditures. Historically, the agency has spent about 70–80% of appropriated funds in the past several years, with personnel comprising roughly 69% of expenditures in fiscal 2024.

Committee members asked Cameron whether homeowners statewide will face premium spikes and nonrenewals due to fires elsewhere; Cameron said carriers that operate nationally are affected by reinsurance and catastrophic losses in other states, and that regulators in Idaho have approved rate increases where justified. He said the department is watching solvency issues among some carriers and is pursuing legislative and administrative options to protect access to coverage and consumers.

Representative Furness asked about the 13‑32 waiver and the high‑risk pool (a reinsurance function that helps insurers by sharing high‑cost claims). Cameron said the waiver and the reinsurance arrangement have helped reduce individual market rates and increase carrier participation on the exchange.

Cameron also introduced senior staff in the room, including Deputy Director Wes Trucksler, Public Information Officer Julie Robinson and the department’s fiscal officer; he said most of the department’s positions are filled and that the agency remains active in wildfire response and consumer assistance in affected areas.

The committee did not take formal action on the department’s requests on Jan. 21; Cameron said the department will provide additional data and reports requested by legislators as they consider funding and statutory options.

(Reporting note: the Department of Insurance presentation and Q&A were given to the Joint Finance‑Appropriations Committee on Jan. 21, 2025. No committee votes on the budget requests were recorded in the provided transcript.)