Willis and The Nature Conservancy Unveil Wildfire Policy Tied to Forest Mitigation Efforts

Willis and The Nature Conservancy (TNC) have launched a wildfire resilience insurance policy that adjusts premiums and deductibles based on nature-based risk mitigation, marking a first for the industry. The $2.5 million policy was developed for the Tahoe Donner Association, a private homeowners association in Truckee, California, and reflects ecological forest practices implemented on its land. 

The policy was created in partnership with the Center for Law, Energy, and the Environment at the University of California, Berkeley (UC Berkeley), and was structured by Willis and underwritten by Globe Underwriting. It applies to 1,345 acres of forest and recreation land within Tahoe Donner and offers a 39 percent lower premium and 89 percent lower deductible than a comparable policy without fire mitigation. 

David Williams, associate director of alternative risk transfer solutions at Willis, said, "The forest management work completed by Tahoe Donner by removing fuel that could burn and leading to a lower fire risk has considerably reduced the premium and deductible in this insurance policy." He added that Willis collaborated across the insurance industry to secure the placement with Globe Underwriting. 

Forest management measures undertaken by Tahoe Donner since 2015 span 1,520 acres and include tree thinning and prescribed burns. These practices are scientifically validated methods for reducing wildfire intensity and protecting forest health. Despite such efforts, insurance policies have historically failed to recognize their impact on risk profiles. 

Kristen Wilson, lead forest scientist at The Nature Conservancy in California, said, "By placing this innovative insurance product, we hope to inspire other insurance underwriters to account for the benefit of thinning and prescribed fire and increase the implementation of this type of work more broadly." 

Dave Jones, director of the Climate Risk Initiative at UC Berkeley School of Law and former California insurance commissioner, said, "Federal, state, and local governments; homeowners; homeowners' associations; and businesses are doing the right thing to reduce wildfire risk and invest in nature-based forest management. The improved price and availability of this pioneering insurance policy demonstrate that home and business insurers can and should renew and write property insurance in California and elsewhere in the United States where forest treatment is undertaken."

Annie Rosenfeld, general manager of Tahoe Donner, said, "Tahoe Donner has been tested with fires that have come to the borders of the community, and the forestry work did its job. It slowed the spread of the fire to give firefighters enough time to stop it from impacting our community. We are proud to be a leader in this field." 

The policy's launch comes amid a destabilized insurance market in California, where rising wildfire risks have caused insurers to withdraw coverage across many regions. Thousands of homeowners have faced nonrenewals, particularly in high-risk areas. Between September 2020 and September 2024, California's FAIR Plan saw a 123 percent increase in residential policies and a 161 percent jump in commercial policies, driven largely by wildfire risk.