pa-56-37-1360: American Association of Insurance Services; fire loss assignment and mitigation evaluation score for homeowners insurance

Summary

On August 27, 2026, the Insurance Department (Department) received from American Association of Insurance Services (AAIS), a rate/rule filing with proposed revisions for homeowners insurance. AAIS proposes to introduce its new Fire Loss Assignment and Mitigation Evaluation Score (FLAMES). AAIS states, ''FLAMES (Fire Loss Assignment & Mitigation Evaluation Score) is a new, modern, and meaningful evaluation score that insurers across the country will use to evaluate local fire protection and risk mitigation outcomes.'' As further described by AAIS, ''There are two parts of the FLAMES score: the Fire Loss Assignment portion and the Mitigation Evaluation Score portion,'': • Fire Loss Assignment consists of AAIS's evaluation of the anticipated frequency and severity of fire losses in each Zip Code. Each Zip Code in this Commonwealth is assigned to 1 of 10 numerical categories, from 1 to 10, with rating factors for the fire peril (only) ranging from a low of 1.000 to a high of 1.699. • The Mitigation Evaluation Score is based on AAIS's evaluation of key performance indicators (KPI) intended to evaluate local risk mitigation activities. The KPIs are based on an optional survey to be completed by each community's representatives, which AAIS notes will often be fire department personnel. Based on the survey responses, or lack thereof, each Zip Code will be assigned to one of the five following categories: exemplary, leading, adequate, lagging or lacking data, with rating factors...

The agency’s own summary, as published.