Insurance Fairness Project Statement on Passage of Colorado Risk Model Law (HB 1182)
FOR IMMEDIATE RELEASE
May 29, 2025
Contact: contact@insurancefairnessproject.com
Insurance Fairness Project Statement on Passage of Colorado Risk Model Law (HB 1182)
Yesterday, Colorado Governor Jared Polis signed HB 1182, the Risk Model Use in Property Insurance Policies bill, into law, giving regulators and policyholders more transparency into how climate risk factors into insurance pricing and underwriting. HB 1182 represents a step forward in addressing the state’s ongoing, climate-driven home insurance crisis.
“Coloradans have been calling on their government to address the home insurance crisis, and today state leaders responded with a good first step,” said TJ Helmstetter, spokesperson for the Insurance Fairness Project. “Insurers have been leaving Coloradans in the lurch with higher premiums and canceled policies, making it harder for people to protect themselves from extreme weather and wildfires. If it works as intended, this law should help regulators hold the insurers more accountable and protect consumers from industry abuses.”
Here’s how the bill addresses the insurance crisis in Colorado:
More transparency for regulators and policyholders: Insurers in Colorado and other states rely on catastrophe and wildfire models, but regulators and policyholders haven’t had insight into the underlying data and risk factors in those models until now.
Lower insurance premiums for residents: State and local governments have made significant investments in wildfire and climate resilience measures. HB 1182 gives Colorado regulators more oversight into pricing models to make sure those investments trickle down to real cost savings for residents.
Better regulation now and in the future, with regulators informed with underlying data behind policy prices and risk factors.
In contrast with states like California, HB 1182 puts Colorado ahead by starting to ensure that insurers are factoring wildfire resilience into insurance underwriting. HB 1182 could also act as a model for other states like Alabama, Louisiana, and Idaho trying to lower insurance premiums by connecting the dots between rates and investments that make homes more resilient to extreme weather.
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The Insurance Fairness Project is an information hub dedicated to offering insights into the home insurance crisis, exploring its drivers and highlighting solutions alongside issue experts and community advocates.
