Wildfire Vulnerability – Assessing Credits for Mitigation Features

Over the last six years, wildfire activity in California has resulted in $10 billion of average annual insured losses. Meanwhile, the public has questioned increasing insurance rates based on non-transparent pricing techniques.
On October 15, 2022, the California Department of Insurance (CDI) passed REG-2020-00015, ‘Mitigation in Rating Plans and Wildfire Risk Models’. This has left the industry looking for guidance on implementing credits for these measures by the April 12 deadline to resubmit rating plans.

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