Washington Insurance Commissioner Patty Kuderer is gearing up for a busy legislative session in 2026 with a focus on making insurance rules tougher and clearer for consumers. Since taking office last year, she has made consumer protection her top priority, aiming to boost transparency and strengthen the tools available to regulators.
One of her key efforts is pushing a bill that would let the state’s insurance office order companies to pay compensation directly to policyholders when they break the rules. The bill would also raise fines for violations to $10,000 per incident, bringing property and casualty penalties in line with those for life and health insurance. While the Senate passed the measure, it hit a roadblock in the House when an industry-backed cap on total penalties was added. Kuderer called these caps “anti-consumer” and said they protect companies that commit the worst offenses.
In addition to tougher penalties, Kuderer wants to ban post-loss assignment of benefits (AOB) agreements in repair contracts. These agreements let contractors step in as the claimants and handle the claim, sometimes sidelining the homeowner. The Insurance Commissioner’s office says these types of AOBs can take away important protections from policyholders, such as the ability to communicate directly with insurers or challenge claim decisions.
Wildfire safety is another big focus. The office is proposing a pilot program called Strengthen Washington Homes, which would offer grants to help homeowners make their properties safer from wildfires. This could include installing ember-resistant vents and using ignition-resistant materials. Carriers would also be required to share wildfire risk scores with homeowners, explain how those scores are calculated, and offer tips on reducing risk. Lauren Burnes, a policy analyst at the Insurance Commissioner’s office, said homeowners deserve to know how wildfire risks affect their insurance and what they can do about it.
Behind the scenes, the office is also updating its claims-handling rules for the first time in almost 20 years. This includes new guidelines for reporting fire losses and registering umpires who resolve auto appraisal disputes. There’s also a new advisory board studying how artificial intelligence might affect insurance, especially in underwriting and claims. The board’s recommendations are expected to guide future rules on using AI and automation responsibly.
Kuderer’s proposals reflect a push to make Washington’s insurance system fairer and more transparent for everyone. While some measures, like the compensation and penalty bill, face hurdles, the work continues. The legislative cycle means these issues will remain on the table in 2026, giving the Insurance Commissioner more chances to push for change.