SEPTEMBER 2022CIOAPPLICATIONS.COM9HOW THE NORTHWEST'S LARGEST LOCALLY BASED INSURER MANAGES WILDFIRE RISKconditions and are necessary for wildfire are happening more often. PEMCO's approach to wildfires has evolved over time. Over the last few years, our ability to understand the potential for catastrophic events and relative wildfire risk has improved. Using geospatial data, underwriters can make real-time decisions about the wildfire risk for a specific property, and to consider the overall concentration of risk in a particular area. Mapping the properties we have in our portfolio allows us to visualize potential catastrophe impacts and manage concentration... With the increase in the severity and frequency of wildfires across the country, general awareness has grown among policyholders, and it has prompted people to ask what they can do to protect themselves and find solutions. Many homeowners are taking steps to harden their homes against wildfires One positive outcome of wildfire awareness is that many homeowners in the wildland urban interface are being proactive to protect their homes by clearing materials around the perimeter to make a five-foot non-combustible zone and create at least 30 feet of defensible space.Another positive development is that the government has started to act. We're seeing better forestry management plans put in place by some agencies, as well as more funding for firefighting. Not only has funding improved, but there is also better cooperation and coordination between firefighting entities. Likewise, I've seen some changes in firefighting approaches. For example, in Washington, it is becoming more common to conduct prescribed burning on state land for the first time in nearly two decades. The intent is to help clear our forests of excess debris, like dead and dying trees, that act as fuel for wildfires. This approach should result in healthier forests with a reduced fuel load, potentially decreasing the risk of severe wildfire in critical areas. Even as climate changes increase the risk of wildfire, I'm optimistic that the work we're doing will enable us to continue protecting our homeowners, and with our customers' work, their exposure to a loss can also be reduced. USING GEOSPATIAL DATA, UNDERWRITERS CAN MAKE REAL-TIME DECISIONS ABOUT THE WILDFIRE RISK FOR A SPECIFIC PROPERTY, AND TO CONSIDER THE OVERALL CONCENTRATION OF RISK IN A PARTICULAR AREA
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