Insurance industry tells subcommittee that coordination and legal reforms could ease rising wildfire premiums

Robert Gordon, senior vice president at the American Property Casualty Insurance Association, told the subcommittee insurers support the Fix Our Forests Act and called for better federal coordination to disseminate mitigation practices and prioritize resources. He said insurers have invested in wildfire safety standards and modeling and that a federal fire-shed center could help connect federal, state and private data streams.

Gordon said wildfire losses over the last decade are roughly five times higher than earlier decades and that insurers are responding by withdrawing from some high‑risk markets. "If our forests are properly managed and maintained, wildfire risks are reduced," he said, adding that community-level actions and adoption of IBHS standards make a material difference.

On causes for high premiums, Gordon pointed to a mix of drivers including building cost inflation and development patterns in high‑risk areas, but also raised legal system issues. He said legal‑system abuse has increased costs in some states and cited Florida reforms that, according to his testimony, reduced residual market exposure and slowed rate increases. Committee members pressed whether FOFA alone will lower premiums; witnesses said FOFA could help but that funding, implementation and legal reform also matter.

Members highlighted that homeowners in some areas face anecdotal premium spikes (members cited examples up to 300% or $6,000 annually) and asked witnesses to provide more precise, statewide data in writing. The subcommittee asked witnesses for follow‑up written evidence to substantiate claims on rates and legal drivers.