Requesting The Insurance Commissioner To Research And Convene Stakeholder Discussions To Consider The Concept Of A Wildfire Insurance Compact.
Impact
The resolution acknowledges that the rising incidence of wildfires could pressure insurance companies to reassess the risks associated with providing homeowners' coverage in Hawaii. This re-evaluation poses a threat to a market that has traditionally been stable. Thus, the exploration of a wildfire insurance compact seeks to foster collaborative strategies among states, potentially leading to more sustainable insurance solutions for residents facing the escalating risks of wildfires.
Summary
Senate Resolution 79, introduced in the Thirty-second Legislature of Hawaii in 2024, addresses the increasing challenges posed by wildfires, especially in light of climate change. The resolution highlights the devastating impact of wildfires, particularly referencing the catastrophic fire in Lahaina on August 8, 2023, which resulted in significant loss of life and property damage. The resolution calls on the Insurance Commissioner to explore the possibility of forming a Wildfire Insurance Compact with other states that face similar risks as a means of managing these threats more effectively.
Sentiment
The sentiment surrounding SR79 seems generally supportive, reflecting a recognition of the urgent need for proactive measures to address the risks associated with wildfires. Stakeholders emphasize the importance of communication and collaboration among different states, with the aim of developing effective policies that not only address the financial implications of wildfires but also cater to the needs of vulnerable communities. However, the resolution implies a complex conversation about balancing risk management with adequate coverage for residents.
Contention
One notable point of contention is the funding structure for policies that may arise from such a compact. The resolution calls for discussions about potential funding mechanisms, including taxes or surcharges on existing taxes to support the compact's initiatives. Concerns may arise around the implications of these funding strategies on local economies and households, as well as the equitable distribution of resources to assist those most affected by wildfires.
Requesting The Governor, In Collaboration With The County Of Maui, To Provide A Clear Strategy For Addressing The Short And Long-term Housing Needs For Residents Displaced By The August 2023 Maui Wildfires.
Urging State Departments To Require Households Impacted By The Lahaina Fires To Exhaust Their Insurance Policies Before Requesting Financial Support From The State.