Surging insurance rates put spotlight on race for state auditor

With some studies finding that home insurance rates have ballooned 44% in Montana over the past five years, the affordability and availability of insurance have become cornerstone issues in the state auditor election.

James Brown, a Republican currently serving as president of Montana's utility board, is squaring off against John Repke, a Democrat and retired businessman, for the open seat to become Montana's top consumer watchdog.

Whoever wins the election on Nov. 5 will assume the helm of an agency with a $10 million budget and a 72-employee payroll oriented primarily toward regulating the insurance industry.

On his campaign website, Brown describes himself as a capable and experienced regulator who will cut red tape, enforce the law, protect consumers and safeguard Montana seniors from financial abuse. Brown, a graduate of Beaverhead County High School who maintains a law practice in Helena, highlights his rural Montana roots, small business experience and "proven and lengthy public service track record" in his campaign materials.

On the campaign trail, Brown has also touted his work at the Montana Public Service Commission, which he's described as being "in a much better place" under his leadership.

Repke's pitch to voters is that he has the independence, political will and private-sector risk-management experience to ensure that Montanans have access to affordable and comprehensive property and health insurance. He argues that Montanans deserve an engaged consumer advocate with the chops he's honed over his 40-year career as a finance executive.

Both candidates have expressed concerns related to insurance affordability and availability as sweeping wildfire- and flooding-related losses force insurance companies and their customers to think differently about a sizable monthly expense that is, for many Montanans, a nonoptional feature of homeownership.

A report published earlier this year found that home insurance rates have surged by 44% in Montana over the past five years, approaching an average of nearly $2,800 annually. According to that same report, which was prepared by LendingTree and based on data compiled by the National Association of Insurance Commissioners, rates in Montana jumped 12% between January and March of this year, well above the nationwide increase of 6% over the same period.

Brown has previously said that, if elected, he plans to address swelling rates by attracting new insurers with "a regulatory environment that makes Montana attractive to do business in." He's also said he's interested in exploring the possibility of providing incentives to homeowners who mitigate fire risk on their properties.

Brown advanced to the general election after earning a 40 percentage-point lead over Helena-area insurance salesman and political newcomer John Jay Willoughby in the primary election. Repke, a Whitefish resident who ran unsuccessfully for a seat on the Montana Public Service Commission in 2022, was unopposed in the primary.

In an interview with Montana Free Press, Repke said Montana needs an auditor who examines the larger insurance landscape through the lens of the climate change-driven catastrophes that are reshaping the industry. Increasingly common natural disasters such as the Camp Fire in Paradise, California, and Hurricane Helene earlier this month are creating huge losses that regulators would be irresponsible to ignore, Repke said.

In response to such events, many insurance companies have ratcheted up rates. Other companies have stopped offering coverage in some states entirely, and still others have been forced into bankruptcy.

Repke has been critical of sitting state auditor Troy Downing, a Republican who passed on a second four-year term to run for U.S. Congress, for declining to participate in the Federal Insurance Office's effort to evaluate how catastrophic climate events have impacted insurance claims at a zipcode-by-zipcode scale.

"Only a few states opted not to participate in this study, and, unfortunately, Montana is one of them," Repke said. "I can't imagine sticking my head in the sand in my business career and not getting access to the information that I need to do my job. I feel that we're not serving Montana insurance consumers or protecting them, as Montana code says the job is intended to."

MTFP reached out to Downing's office regarding Montana's participation, or lack thereof, in that effort but did not receive a reply.

On the campaign trail, Repke said that he's also encountered anxiety over the looming Medicaid expansion sunset. He said that rural health care providers in particular have come to rely on the predictable reimbursement framework that the program has established. If the Legislature declines to reauthorize that program next year, it will have ripple effects on Montanans' access to health care, regardless of whether they're publicly or privately insured, Repke said.

"If we don't provide affordable, quality medical insurance options to people in the state, the health care [providers] in much of the state, especially the rural parts, are at risk of closing down," he said.

If elected, Repke said he'll call on Montana lawmakers to reauthorize Medicaid expansion.

Repke has been critical of Brown's decision in 2022 to launch an unsuccessful campaign to become a Montana Supreme Court justice just halfway through his first four-year term on the PSC. Brown's political ambitions don't bode well for consumers in the new role he's seeking, Repke argues.

"He's spent much, if not most, of his time pursuing other interests while he's getting paid to do a job by the taxpayers," Repke said.

Repke added that the NorthWestern Energy rate hike Brown and his fellow commissioners authorized three months before Brown announced his bid for state auditor should concern Montana voters.

Brown did not respond to MTFP's multiple interview requests, but he did indicate in his response to our 2024 Election Guide questionnaire that he intends to serve his full four-year term as state auditor if elected.

Whoever wins the election will also play a role in the management of state lands. As one of the five top elected officials serving on the Montana Land Board, the state auditor will oversee the management of the state trust lands that contribute income to Montana's public schools.

Repke said if elected, he would "bring a public access perspective to the management of state lands" to the land board and shed some light on the processes that drive its decisions.

No debates between the candidates have been scheduled.

The general election is Nov. 5, though absentee voters will begin receiving their ballots in mid-October.