Hawaii House Bill HCR173

Hawaii 2024 Regular Session

• Introduced: 3/8/24
• Refer: 3/14/24
• Report Pass: 3/27/24
• Refer: 3/27/24

Caption

Requesting The Insurance Commissioner To Convene A Working Group To Assess The Feasibility And Impact Of Requiring Coverage For Commercial Properties And Structures, Including Greenhouses And Shade Houses, Under The Hawaii Property Insurance Association's Plan Of Operation.

Impact

The resolution highlights the predicament that businesses, especially those in the floriculture sector, are facing due to escalating insurance premiums and the risk of losing coverage altogether. The floriculture industry contributes significantly to Hawaii's economy, generating around $47 million. By convening a working group, the resolution seeks to explore innovative insurance solutions that could stabilize the market and provide much-needed support to local businesses. The working group is tasked with gathering insights from relevant stakeholders, including representatives from the floriculture community and commercial property insurers, to develop a well-rounded approach to the issue.

Summary

HCR173 is a House Concurrent Resolution from the Thirty-Second Legislature of Hawaii aimed at addressing the challenges faced by the state's commercial property insurance market, particularly regarding coverage for greenhouses and shade houses vital to the floriculture industry. The resolution requests the Insurance Commissioner to convene a working group that will assess the feasibility and potential impact of requiring such properties to be covered under the Hawaii Property Insurance Association's (HPIA) plan of operation. This action comes in light of significant increases in insurance premiums and widespread market disruptions caused by recent natural disasters, inflation, and other factors affecting the reinsurance market globally.

Contention

One noteworthy aspect of HCR173 is the potential contention surrounding the recommendations that may arise from the working group's assessment. There could be debates about the extent of insurance requirements that should be enforced and whether mandating coverage for commercial properties aligns with market principles. Additionally, stakeholders may have differing opinions on how these insurance requirements could affect operational costs and overall business sustainability within the floriculture industry. The outcome of this working group's deliberations could result in proposed legislative action to address these pressing insurance issues within the state.