The threshold is too low. Triggering it is just plain unlikely, and is mostly redundant.
See http://www.uesp.net/wiki/Skyrim:Intense_Flames#Fire.
I would like to see the perk changed somehow. I don't know precisely how. I'm not a game designer. Maybe just raise the health percentage necessary to trigger it. Maybe change it to something new altogether.
I would resort to mods to do this, but all the mods that change the perk also affect the other elemental perks, which I am more or less satisfied with.
So please, Bethesda, in your next patch, fix Intense Flames. I doubt it would take much time, anyways. Thank you.