02 April 2026
US
Reporter Elliot Hayes
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The National Association of Insurance Commissioners (NAIC) Catastrophe Risk Management Center of Excellence (COE) releases research demonstrating how science-based mitigation and catastrophe modelling can significantly reduce disaster losses and support stable insurance markets.
The analysis, conducted in partnership with the California Department of Insurance, finds that rebuilding wildfire-impacted communities to the Insurance Institute for Business & Home Safety (IBHS) Wildfire Prepared Home standards can reduce projected wildfire average annual losses (AAL) by up to 35 per cent when adopted by all individual homeowners in a community.
AAL is a central data point in insurance rate filings and can be a factor in determining whether insurers will offer coverage in an area and at what price.
While focused on Los Angeles, the study illustrates the broader national value of the COE’s work in helping state insurance regulators assess risk and improve long-term insurability.
Commenting on the findings, NAIC president and Virginia insurance commissioner Scott A. White says: “Catastrophe risk is a national challenge, and state insurance regulators rely on sound data and modelling to protect consumers and support healthy insurance markets.”
White adds that the COE’s research provides a roadmap for communities to rebuild with resilience in mind, which can yield substantial insurance and safety benefits.
The findings underscore a national framework that can be applied across catastrophe-exposed regions. Through the COE, state insurance regulators share tools, research and lessons learned to strengthen resilience, guide mitigation-funding decisions and support faster, stronger recoveries after disasters.
The NAIC Catastrophe Risk Management Center of Excellence provides state insurance regulators with technical expertise and applied research on natural hazard risk to help protect consumers and promote resilient, competitive insurance markets.
As part of the US state-based system of insurance regulation, the NAIC provides expertise, data and analysis for insurance commissioners to effectively regulate the industry and protect consumers. The US standard-setting organisation is governed by the chief insurance regulators from the 50 states, the District of Columbia and five US territories. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer reviews and coordinate regulatory oversight.