Lawmakers debate controversial bill that would force insurers to fundamentally change their business practices: 'We shouldn't kick the whole thing down the road'

Yahoo

09-03-2025

Colorado could adopt legislation to improve insurance protections for residents impacted by increased costs and nonrenewal notices — oftentimes with limited evidence from insurers.
As detailed by The Colorado Sun, the bill's sponsors introduced House Bill 1182 in February. Aimed at increasing transparency regarding risk assessment and the setting of premiums, the legislation would require insurance companies to provide a detailed breakdown of their wildfire risk models and scoring methods to the state and general public.
Customers would receive an assessment 60 days prior to renewal or 90 days before nonrenewal. If they believe an insurance company ruled unfairly — for instance, one homeowner was dropped after their insurer used a satellite image to falsely conclude their property was in the woods — they will have the opportunity to appeal.
In Colorado, property insurance skyrocketed by an average of 58% from 2018 to 2023, according to the Rocky Mountain Insurance Information Association.
While factors such as inflation contributed to this increase, so did extreme weather events like wildfires, which are growing more frequent and severe as human activities drive global temperatures higher. In the Centennial State, more than 3 million people live in areas at risk of wildfires, according to the Colorado State Forest Service.
While companies like Colorado Earth are improving climate resilience by constructing homes with fire-resistant materials, the state is nonetheless mired in a nationwide insurance crisis. All over the U.S., homeowners have been left without coverage or priced out of areas altogether.
In 2023, Colorado introduced a "quasi-governmental insurer" to support homeowners who couldn't find an insurer in the private market, per the Sun.
However, policymakers hope HB1182 will reduce the need for this last-resort coverage, as homeowners would have the chance to prove to insurers that they've taken action to mitigate their wildfire risk, such as clearing vegetation and building with fire-resistant materials. Insurers would also have to take state-run efforts to combat wildfires under consideration.
The House Business Affairs and Labor Committee has yet to assign a hearing date to HB1182. One hurdle to overcome is how the bill would protect proprietary technology from third-party companies working with private insurers.
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Arvada Rep. Brianna Titone, one of the bill's sponsors, indicated to the Sun that she would be open to collaborating with companies to implement a mindful rollout.
"Maybe there's some things that you need to push off a little bit later, but we shouldn't kick the whole thing down the road just because there's a couple technological things that we need to address," Titone said.
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