Increasing property insurance rates in Montana have caught the attention of both advocates and insurance companies, with the state’s legislature seeking to uncover the reasons behind the surge. House Joint Resolution 61, passed in the 2025 Legislative session, mandates an in-depth study of property insurance, marking it as the session’s top priority study bill. The Economic Affairs Interim Committee, led by House Speaker Rep. Brandon Ler, is spearheading this investigation, and recently convened a panel with insurance lobbyists, consumer advocates, and organizations like Headwaters Economics.
The panel discussion highlighted several contributing factors to rising insurance costs, including extreme weather events, legal system abuses, increased building expenses, and regulatory challenges. Insurance companies are concerned about paying more in claims than they receive in premiums, risking a decline in service providers entering the market.
Ler discussed “cost shifting,” a concept that suggests making insurance cheaper for one group could increase costs for another. He emphasized the need for a comprehensive solution: “We’ve got a much bigger problem…fewer insurance companies actually coming into the marketplace. We do not want to drive any of these last remaining insurance companies out.”
Consumer advocates raised alarms about the lack of data on rate increases, policy nonrenewals, and the impact of credit scores on costs. Michael DeLong from the Consumer Federation stressed the need for more accurate data: “We need more data, and we need more accurate data…there’s a lack of like, concrete information on what, exactly how bad the problem is, how much prices are going up.” The Consumer Federation of America reports that Montana’s homeowner insurance premiums rose by about 10% from 2021 to 2024, with a nationwide average increase of $650.
A recent federal study examined insurance rate hikes from 2018 to 2022, though Montana did not contribute data. Trevor Graff, from the Securities and Insurance office, mentioned Montana’s intent to participate in the next NAIC data call, though results will not be available until June.
Wildfires remain a significant concern, with the National Association of Mutual Insurance Companies predicting a 50% increase in billion-dollar disasters by the decade’s end. Montana has faced at least one billion-dollar disaster annually, with the potential for 16 or more by 2030. Kimi Barrett from Headwaters Economics emphasized proactive risk reduction: “If the homes are part of this problem, they must fundamentally be part of the solution.”
Ler, with experience in fire management, noted the necessity of federal intervention for effective fire mitigation. He argued for federal responsibility in managing lands to reduce fire risk: “We have to charge the federal government with actually taking care of the lands that they, in a sense, own or have control over.”
