On January 16, the Greater Arvada Chamber convened business leaders, elected officials, and industry experts for a timely Community Impact Forum focused on the State of Property & Casualty Insurance in Colorado. With rising premiums, tightening availability, and growing concerns tied to wildfire, hail, and development patterns, the forum explored what’s driving today’s insurance market and what communities like Arvada can do next.
The conversation was led by Ethan Aumann, Senior Director at the American Property Casualty Insurance Association (APCIA), who delivered a data-driven keynote connecting national insurance trends to Colorado’s unique risk profile. The keynote was followed by a panel moderated by Michael McCarron, owner of Lakeside Insurance, featuring Kelly Campbell, Executive Director of the Colorado FAIR Plan, and Brian Bernier, CEO of the Professional Independent Insurance Agents of Colorado. Together, the speakers offered perspectives from national policy, state-level access, local agents, and real-world business impacts.
Below are the key takeaways from the forum.
1. Rising Insurance Costs Reflect Rising Risk
Insurance premiums are increasing not because of price gouging, but because losses are increasing, and Colorado has been hit especially hard. As Ethan Aumann explained, insurance is fundamentally a shared risk model.
“When losses rise, that flows directly into the rates that we all see and pay.”
Colorado ranks near the top nationally for both hail damage and wildfire exposure, while construction and replacement costs have more than doubled over the past decade. These pressures have resulted in sustained underwriting losses for insurers operating in the state, limiting capital and shrinking capacity.
What this means locally: Higher risk and higher rebuilding costs ultimately impact affordability for homeowners and businesses alike.
2. Climate Matters, but It’s Not the Only Driver
While climate-related events are a significant factor, speakers emphasized that they are only part of a broader picture. Inflation, development in higher-risk areas, legal system costs, and regulatory friction all contribute to today’s insurance challenges. As Aumann noted, addressing only one factor won’t solve the problem.
What this means locally: Long-term solutions require coordinated action across policy, planning, and risk reduction — not quick fixes.
3. Insurance Availability Is Becoming a Statewide Issue
The creation of the Colorado FAIR Plan reflects growing availability challenges across the state. Executive Director Kelly Campbell shared that demand for the FAIR Plan is not limited to wildfire-prone mountain communities.
Policies are coming from across Colorado, often driven by multiple claims, including hail and water damage, rather than wildfire risk alone. This shift highlights changing insurer appetites and stricter underwriting standards.
What this means locally: Businesses and homeowners need to think proactively about insurability, even outside traditionally high-risk areas.
4. Mitigation Works, but Clear Standards Matter
A consistent theme throughout the forum was frustration from property owners who want to reduce risk but don’t know what actions will truly make a difference. Brian Bernier captured this sentiment clearly:
“Every consumer I talk to says the same thing: ‘Just tell me what to do.’”
Speakers pointed to science-based mitigation standards, such as IBHS’s Wildfire Prepared Home program, as a promising path forward. These standards offer third-party verification that insurers can recognize and reward over time.
What this means locally: Clear, aligned mitigation guidance helps property owners invest wisely, and improves long-term insurance stability.
5. Collaboration Is the Only Path Forward
Moderator Michael McCarron emphasized that insurance challenges don’t exist in isolation. Decisions around land use, utilities, building materials, and emergency response all shape risk, and ripple through insurance markets.
“We’re not just looking in the rearview mirror, we’re also thinking about what happens if a fire starts today, and how fast that risk can escalate.”
Panelists agreed that breaking down silos between insurers, fire officials, regulators, utilities, and local governments is essential to reducing risk and avoiding the severe market disruptions seen in other states.
What this means locally: Community-wide collaboration is key to protecting property, affordability, and economic resilience.
View a video recording of the event below and find the presentation slides here.
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