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HB 2384

fire insurance; wildfire risk modeling

57th Legislature - First Regular Session Introduced by Leo Biasiucci and 14 co-sponsors

Arizona requires fire insurers to use current wildfire risk modeling for rates and underwriting decisions, ensuring coverage decisions reflect actual hazard data rather than outdated assessments.

Senate Second Reading
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Bill Summary · HB 2384

Legislative bill overview

HB 2384 requires Arizona insurance companies to use updated wildfire risk modeling when setting fire insurance rates and underwriting decisions. The bill mandates that insurers incorporate current scientific data on wildfire hazards rather than relying on outdated risk assessments, with oversight provisions for compliance.

Why is this important

Arizona faces escalating wildfire threats due to climate change and drought conditions, which directly affects insurance availability and affordability for homeowners in high-risk areas. Insurance companies have increasingly restricted coverage or raised premiums significantly in wildfire-prone regions; this bill aims to ensure those decisions are based on current, accurate risk data rather than overly conservative assumptions that may not reflect actual conditions.

Potential points of contention

  • Industry compliance costs: Insurers argue that implementing new modeling systems requires substantial investments in technology and actuarial analysis, potentially raising administrative costs
  • Rate implications: Depending on modeling results, some areas could see increased premiums while others might decrease, creating winners and losers among consumers and regional stakeholders
  • Regulatory oversight ambiguity: The bill's enforcement mechanisms and which state agency has authority to audit insurer compliance may lack clarity, raising questions about practical implementation

Compiled from official sources — confirm details with the bill’s official record.

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