THE SENATE S.B. NO. 1129 THIRTY-THIRD LEGISLATURE, 2025 STATE OF HAWAII A BILL FOR AN ACT RELATING TO INSURANCE. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
THE SENATE S.B. NO. 1129
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII
THE SENATE
S.B. NO.
1129
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII
A BILL FOR AN ACT
RELATING TO INSURANCE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Chapter 431, Hawaii Revised Statutes, is amended by adding a new section to part II of article 2 to be appropriately designated and to read as follows: "§431:2- Working group to identify, assess, and recommend risk transfer market mechanisms to promote investment in natural infrastructure to reduce risks of climate change related to catastrophic events. (a) The commissioner shall convene a working group to identify, assess, and recommend risk transfer market mechanisms that: (1) Promote investment in natural infrastructure to reduce the risks of climate change related to catastrophic events; (2) Create incentives for investment in natural infrastructure to reduce risks to communities; and (3) Provide mitigation incentives for private investment in natural lands to lessen exposure and reduce climate risks to public safety, property, utilities, and infrastructure. (b) To the extent that the working group recommends risk transfer market mechanisms that would be provided by insurance and reinsurance companies, the working group shall recommend mechanisms that: (1) Are profitable to insurance and reinsurance companies; and (2) If appropriate, apply to communities or regions, rather than individual land parcels. (c) The policies recommended pursuant to subsections (a) and (b) shall include the following considerations: (1) Hawaii-analogous examples in other countries for creating incentives for investment in natural infrastructure as part of insurance policies that mitigate elemental risks; (2) Use of insurance to create incentives for wetland restoration to help defend the coast against storm surge; (3) Creation of incentives for forests to be managed to reduce the risk of major fires; (4) Reduction of insurance companies' exposure to climate change related losses through innovative state policies or insurance pricing mechanisms that reward good behavior and charge premiums for actions that increase risks to public safety, property loss, or environmental attributes; and (5) Development of rating systems based on community risk factors to climate events, and the use of insurance incentives to make communities more resilient. (d) The commissioner shall include in the annual report required under section 431:2-211 a report of the working group's findings and recommendations, including any proposed legislation." SECTION 2. New statutory material is underscored. SECTION 3. This Act shall take effect upon its approval. INTRODUCED BY: _____________________________
SECTION 1. Chapter 431, Hawaii Revised Statutes, is amended by adding a new section to part II of article 2 to be appropriately designated and to read as follows:
"§431:2- Working group to identify, assess, and recommend risk transfer market mechanisms to promote investment in natural infrastructure to reduce risks of climate change related to catastrophic events. (a) The commissioner shall convene a working group to identify, assess, and recommend risk transfer market mechanisms that:
(1) Promote investment in natural infrastructure to reduce the risks of climate change related to catastrophic events;
(2) Create incentives for investment in natural infrastructure to reduce risks to communities; and
(3) Provide mitigation incentives for private investment in natural lands to lessen exposure and reduce climate risks to public safety, property, utilities, and infrastructure.
(b) To the extent that the working group recommends risk transfer market mechanisms that would be provided by insurance and reinsurance companies, the working group shall recommend mechanisms that:
(1) Are profitable to insurance and reinsurance companies; and
(2) If appropriate, apply to communities or regions, rather than individual land parcels.
(c) The policies recommended pursuant to subsections (a) and (b) shall include the following considerations:
(1) Hawaii-analogous examples in other countries for creating incentives for investment in natural infrastructure as part of insurance policies that mitigate elemental risks;
(2) Use of insurance to create incentives for wetland restoration to help defend the coast against storm surge;
(3) Creation of incentives for forests to be managed to reduce the risk of major fires;
(4) Reduction of insurance companies' exposure to climate change related losses through innovative state policies or insurance pricing mechanisms that reward good behavior and charge premiums for actions that increase risks to public safety, property loss, or environmental attributes; and
(5) Development of rating systems based on community risk factors to climate events, and the use of insurance incentives to make communities more resilient.
(d) The commissioner shall include in the annual report required under section 431:2-211 a report of the working group's findings and recommendations, including any proposed legislation."
SECTION 2. New statutory material is underscored.
SECTION 3. This Act shall take effect upon its approval.
INTRODUCED BY: _____________________________
INTRODUCED BY:
_____________________________
Report Title: Insurance Commissioner; Working Group; Risk Transfer Market Mechanisms; Report Description: Requires the Insurance Commissioner to convene a working group to identify, assess, and recommend certain risk transfer market mechanisms. The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
Report Title:
Insurance Commissioner; Working Group; Risk Transfer Market Mechanisms; Report
Description:
Requires the Insurance Commissioner to convene a working group to identify, assess, and recommend certain risk transfer market mechanisms.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.