AAIS FLAMES gets approval in South Carolina and Indiana

AAIS said its FLAMES fire-risk rating framework has been approved for use by homeowners insurers in South Carolina and Indiana. The two-state green light could affect how premiums reflect fire-loss risk and community prevention efforts, with broader national adoption still in progress.

Why it matters: - FLAMES could change how homeowners insurers price fire risk by factoring in both loss potential and local prevention work. - The framework is designed to recognize Community Risk Reduction efforts, which can affect premiums, insurance decisions and incentives for safer neighborhoods. - AAIS said the approvals are an important step toward wider use of a more comprehensive fire-risk model across the property and casualty market.

What happened: - The American Association of Insurance Services announced that FLAMES has been approved by the South Carolina Department of Insurance and the Indiana Department of Insurance for use by homeowners insurers in both states. - The announcement was made Sept. 10, 2026, from Lisle, Illinois. - South Carolina and Indiana are the first states to approve FLAMES.

The details: - FLAMES stands for Fire Loss Assignment & Mitigation Evaluation Score. - AAIS developed FLAMES as a nationwide framework to evaluate local fire protection more effectively. - The framework combines predictive risk insights with recognition of Community Risk Reduction, or CRR, efforts. - The Fire Loss Assignment component uses ZIP code-level data and advanced modeling to evaluate fire loss potential. - The Mitigation Evaluation Score measures the effectiveness of local mitigation, prevention and CRR activities. - AAIS said the two components together align fire-protection evaluation with the current insurance market and provide information to insurers, communities and public safety leaders. - AAIS said FLAMES is intended to help carriers update fire protection ratings with a scalable approach that fits existing workflows across jurisdictions. - More information is available in AAIS's FLAMES product page.

Between the lines: - The approvals suggest state regulators are open to rating tools that go beyond historic loss data and account for prevention efforts. - For communities, the framework could create a clearer link between mitigation spending and insurance outcomes. - For insurers, the appeal is practical: AAIS is pitching FLAMES as a tool that can be adopted without overhauling existing rating processes.

What's next: - AAIS said additional filings are under review or in development to expand FLAMES to more states. - Broader adoption will determine whether the framework becomes a more standard part of fire-risk pricing nationwide. - AAIS will likely continue marketing FLAMES to carriers, regulators and public safety stakeholders as approvals expand.