Arizona Department of Insurance and Financial Institutions

This document provides an update on the DIFI Strategic Plan's progress for Fiscal Year 2026, Quarter 2. It details milestones and future initiatives across five key areas: enhancing consumer resources, engaging with stakeholders, improving digital accessibility, streamlining operations, and increasing examination efficiency. The overall aim is to drive innovation and improve service for all Arizonans by fostering operational excellence, transparency, and proactive service delivery within the insurance and financial institutions sector.

The meeting covered administrative items, including roll call confirming a quorum, and the approval of proposed 2026 quarterly meeting dates (January 16th, April 17th, June 19th, and October 16th). The Executive Director reported a 26% year-to-date decrease in autothefts compared to the previous year, potentially reaching the lowest level since the authority's inception. Updates were provided on enhancing the ACT database integration with ACIC, mandating new recovery fields by January 1, 2027, and expanding terminal operator access. Emerging trends in vehicle theft, such as the use of key programmers, security system vulnerabilities (Lexus headlamp access), pushaway theft in Dodge vehicles, rental vehicle replication schemes, and signal jamming for key fobs, were discussed based on recent conference attendance. The Business Operations Administrator presented the financial report as of November 20, 2025, showing a fund balance of $6.27 million, and forecasted budget appropriations for operations, local grants, and the DPS task force. Updates on grant contract compliance reviews (CCNRs) were given, noting that Le Paz, Puma, Pinal, and Santa Cruz Counties all received perfect compliance scores for their fiscal year 2025 grants.

The meeting agenda included introductory procedures such as roll call and quorum confirmation, followed by reports and potential actions. Key discussion items involved the Chairman's report, which included the introduction of new board members and the 2026 Board Chair/Vice Chair elections and subcommittee assignments. The Executive Director's report covered AATA updates, current trends, the Annual Report, 2025 vehicle theft statistics, and a request for approval of an Interagency Service Agreement (ISA) between AATA and DPS. Financial matters included the Q2 Financial Report ending December 31, 2025, an insurance collection update, and a review of the FY26 Spending Plan. Other agenda items covered public awareness and grant programs, and reports from various subcommittees, including Law Enforcement, Public Awareness, and Vertical Prosecution.

The meeting centered on the final discussion and approval of the final report. Council members made a motion to approve the report, which was seconded and then approved. There was also mention of follow-up steps and the receipt of comment letters, including one additional letter from APCIA.

The meeting included presentations from the Nevada Division of Insurance, KB Homes, the California Department of Insurance, and the Idaho Department of Insurance. Discussions covered wildfire risk mitigation, the impact of wildfires on insurance markets, and strategies for stabilizing property insurance. The KB Homes presentation focused on wildfire-resilient neighborhood design, highlighting the Dixon Trail project in Escondido, CA. The Idaho Department of Insurance discussed the H17 Wildfire Risk Mitigation and Stabilization Act, the H384 Wildfire Risk Mitigation Fund, and property insurance market data. Issues and options related to modeling, mitigation, building standards, surplus lines, FAIR plans, nonrenewal notifications, wildfire exclusions, and emergency planning were also addressed.