The Senate Business, Labor, and Economic Affairs Committee convened on March 21, 2025, to discuss House Bill 533, which aims to enhance transparency in the residential property insurance market in Montana. The bill requires insurers using wildfire risk scores for underwriting to provide specific information upon request, allowing homeowners to understand how their properties are assessed for fire risk.

The discussion began with a summary of the bill's intent, highlighting the growing concern over rising home insurance rates linked to wildfire risks, particularly in light of recent catastrophic fires in states like California. Proponents of the bill emphasized that it would empower homeowners by allowing them to request details about their wildfire risk scores, which are increasingly used by insurance companies in their underwriting processes.

Bob Biskupiak, representing the Independent Insurance Agencies of Montana and FireSafe Montana, spoke in favor of the bill. He noted that many homeowners have faced cancellations or non-renewals of their insurance policies due to unfavorable fire scores. Biskupiak pointed out that while not all insurance companies previously used these scores, the trend has shifted, with most now relying on third-party vendors employing algorithms and artificial intelligence to determine risk.

Biskupiak expressed concerns that the technology used to assess fire risk may have outpaced common sense, leading to inconsistencies in how similar properties are evaluated. He provided an example of two nearly identical homes, one deemed insurable and the other not, based solely on their fire scores. This inconsistency, he argued, underscores the need for homeowners to have access to information about how their scores are calculated and the factors influencing them.

The bill aims to address these issues by allowing insured individuals or their agents to request explanations from insurance companies regarding their fire scores. This transparency is seen as crucial for homeowners, especially in light of the potential consequences of non-renewal, which can push them into the surplus lines market—often associated with higher costs and reduced coverage.

The committee's discussions highlighted the broader implications of wildfire risk assessments, not only for Montana but also for homeowners across the country facing similar challenges. The meeting concluded with a call for continued support of the bill, emphasizing the importance of consumer rights and the need for effective fire mitigation strategies to prevent losses.