Montana House panel backs interim study of rising property insurance rates via HJ 61

Representative Josh Seckinger, the bill sponsor, told the House Business and Labor Committee that House Joint Resolution 61 would create an interim study to "address one of the fastest growing threats to housing affordability in the state of Montana: property insurance rates." Seckinger said Montana has "the fifth fastest rising property insurance rates in the nation" and that premiums "have increased by 44% over the past 5 years," and he urged the committee to direct an interim panel to investigate causes and solutions.

Frank Cote, speaking for the Commissioner of Securities and Insurance, told lawmakers the auditor's office reviews homeowner rate filings and "I review every rate increase that is asked for that is over 10%." Cote said carriers are sometimes notifying the department and insureds when they choose not to renew in particular areas, and he recommended using the interim to dive deeper into filings and market behavior.

Industry and stakeholder witnesses supported studying the problem rather than acting immediately. Greg Van Horsten of State Farm said State Farm "does not intend to go anywhere" and called the sponsor's cited sources a good starting place for discussion. Rhonda Wiggers of the National Federation of Independent Business said rising insurance is hitting small businesses and homeowners; "my insurance has gone up 48%," she told the committee, and urged study rather than hasty regulation that might push insurers from the state.

Advocates and affected communities described additional factors and consequences. Laura Collins of the Montana Environmental Information Center said wildfire and other extreme weather are among the "many factors" affecting the market and urged a data-driven approach. Patrick Yawaki, representing several tribal nations, said tribal communities face high wildfire exposure and historical lack of insurer presence, making access and affordability especially acute in rural tribal areas. Online public commenter Linda Simones said she is a retired teacher on a fixed income and that recent increases will "negatively affect my life and my ability to stay in my home."

Committee members asked technical questions about causes and remedies. Members and witnesses discussed higher replacement and construction costs, movement into the wildland–urban interface, shrinking reinsurance capacity after nationally significant disasters, and the trade-offs of options such as fair plans or a state insurer of last resort. Frank Cote explained that reinsurers' higher losses and lower capital raise costs for primary insurers, which are passed to consumers; Greg Van Horsten emphasized that market entry and exit dynamics merit careful study and warned against overregulation that could deter carriers.

After discussion the committee moved to executive action. Representative Seckinger moved that HJ 61 receive a "due pass" recommendation. The committee took a voice vote; the Chair announced the ayes had it and recorded proxy aye votes for Representatives Fitzpatrick, Lair, Lynch, Carlin, and Sullivan. The Chair stated the result as "20-0," and the motion passed.

The committee's approved interim study will gather data on root causes, impacts on homeowners and businesses, and potential policy responses for consideration before the next legislative session. Committee members suggested the interim work examine mitigation and education programs (for example Firewise or defensible-space incentives), market structure and reinsurance impacts, and the effects on tribal and rural communities.