The Arizona Department of Insurance and Financial Institutions (DIFI) today announced the release of the Resiliency and Mitigation Council’s (Council) detailed report on the availability and affordability of homeowners insurance in areas of the state impacted by heightened wildfire risk. The report, which examines the current trends in Arizona’s homeowners insurance market, mitigation measures to reduce the risk of wildfire to properties, and approaches other states have adopted to address similar market challenges, follows a year of extensive investigation and collaboration with public and private sector experts.
The Council, established by the former DIFI Director on December 2, 2024, was tasked with investigating the challenges Arizona homeowners face in forested and wildland-urban interface (WUI) areas.
“The Council’s investigation revealed that there is no single, all-encompassing solution to the issue of increased wildfire risk and brought to light the lack of available and affordable property insurance WUI areas are facing,” stated Maria Ailor, Interim DIFI Director and Chair of the Council. “This issue requires a multifaceted approach with individuals, communities, and the state working in tandem to implement solutions.”
Key Focus Areas of the Investigation
Over the course of ten public meetings held between December 2024 and September 2025, the Council heard testimony from the public and sought expertise from a wide range of organizations. The investigation focused on:
- The frequency and severity of natural disasters, including wildfires and subsequent flooding.
- DIFI’s regulatory authority over property and casualty insurance rates in Arizona.
- Forestry management and wildfire mitigation practices.
- The effect of insurance losses on the availability and affordability of property insurance, including policy non-renewals and consumer discounts for mitigation efforts.
- Building codes and construction practices that increase a structure’s resilience to fire.
- Strategies implemented by other states to reduce natural disaster risk and improve insurance markets.
- Catastrophe modeling, public outreach, and funding sources for mitigation projects.
The full report of the Council’s findings is available on the DIFI website at Resiliency and Mitigation Council 2025 Final Report.pdf
