THE SENATE S.R. NO. 125 THIRTY-THIRD LEGISLATURE, 2025 STATE OF HAWAII SENATE RESOLUTION REQUESTING THE INSURANCE COMMISSIONER to produce a detailed report regarding THE STATE OF THE PRIVATE PROPERTY INSURANCE INDUSTRY in hawaiʻi.
THE SENATE S.R. NO. 125
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII
THE SENATE
S.R. NO.
125
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII
SENATE RESOLUTION
REQUESTING THE INSURANCE COMMISSIONER to produce a detailed report regarding THE STATE OF THE PRIVATE PROPERTY INSURANCE INDUSTRY in hawaiʻi.
WHEREAS, Hawaiʻi is experiencing an increase in natural disasters, including hurricanes, wildfires, and volcanic eruptions, which are causing widespread damage and contributing to the growing financial strain on the State's residents; and WHEREAS, these natural disasters have led to an increase in insurance premiums, with some private insurers raising their rates significantly and others considering withdrawing from the market altogether; and WHEREAS, insurers have claimed that the high financial costs and regulatory burdens associated with providing insurance in Hawaiʻi are threatening the survival of the private insurance industry; and WHEREAS, the widespread withdrawal of private insurers from the property insurance market would have severe consequences for the State's residents and homeowners, further exacerbating the housing crisis and threatening the ability of homeowners to secure lending and to have a financial safety net in the event of property loss or damage; and WHEREAS, the potential withdrawal of private insurers from the State would leave many residents without access to necessary homeowners' insurance coverage, including by threatening the survival of essential insurance of last resort programs, such as the Hawaiʻi Property Insurance Association, which would place significant burdens on taxpayers and the State; and WHEREAS, to effectively respond to these concerns, the Legislature must fully understand the state of the private insurance market, including the financial health of insurers, factors driving the rising premiums, and the potential impact of more insurers withdrawing from the State; and WHEREAS, it is crucial to assess whether the State will be left without any private insurers, and if so, what steps the State can take to mitigate the potential risks to homeowners and residents; and WHEREAS, the State must prepare for the possibility of a universal withdrawal of private insurers from the property insurance market, including by exploring the feasibility of the State entering the market as a primary property insurance provider, either through public insurance mechanisms or other means, such as eminent domain, to acquire private insurance companies if necessary; now, therefore, BE IT RESOLVED by the Senate of the Thirty-third Legislature of the State of Hawaii, Regular Session of 2025, that the Insurance Commissioner is requested to produce a detailed report on the current state of private insurance companies operating in Hawaiʻi; and BE IT FURTHER RESOLVED that the report is requested to include specific findings regarding the factors that are driving the increases in premiums, particularly in high-risk areas affected by wildfires, hurricanes, and volcanic eruptions, as well as the potential cost and regulation involved if the State were to create a publicly administered insurance program; and BE IT FURTHER RESOLVED that the report is requested to include information on the number of private entities providing property insurance in the State and information on those insurers' revenues, profits and losses, valuations, messages to shareholders, and any other information the Insurance Commissioner finds relevant to inform the Legislature about the economic health of the private property insurance industry in the State; and BE IT FURTHER RESOLVED that the report assess the likelihood that one or more private property insurers will cease operations in Hawaiʻi and the risk that the State will be left without any private insurers; and BE IT FURTHER RESOLVED that the report provide recommendations on the State's ability to enter the insurance market as a primary property insurance provider if private insurers exit the State, including an evaluation of whether and how the State could use eminent domain to seize private property insurance companies; and BE IT FURTHER RESOLVED that the Insurance Commissioner is requested to submit the report to the Legislature no later than twenty days prior to the convening of the Regular Session of 2026; and BE IT FURTHER RESOLVED that a certified copy of this Resolution be transmitted to the Insurance Commissioner. OFFERED BY: _____________________________ Report Title: DCCA; Insurance Commissioner; Private Property Insurance; Report
WHEREAS, Hawaiʻi is experiencing an increase in natural disasters, including hurricanes, wildfires, and volcanic eruptions, which are causing widespread damage and contributing to the growing financial strain on the State's residents; and
WHEREAS, these natural disasters have led to an increase in insurance premiums, with some private insurers raising their rates significantly and others considering withdrawing from the market altogether; and
WHEREAS, insurers have claimed that the high financial costs and regulatory burdens associated with providing insurance in Hawaiʻi are threatening the survival of the private insurance industry; and
WHEREAS, the widespread withdrawal of private insurers from the property insurance market would have severe consequences for the State's residents and homeowners, further exacerbating the housing crisis and threatening the ability of homeowners to secure lending and to have a financial safety net in the event of property loss or damage; and
WHEREAS, the potential withdrawal of private insurers from the State would leave many residents without access to necessary homeowners' insurance coverage, including by threatening the survival of essential insurance of last resort programs, such as the Hawaiʻi Property Insurance Association, which would place significant burdens on taxpayers and the State; and
WHEREAS, to effectively respond to these concerns, the Legislature must fully understand the state of the private insurance market, including the financial health of insurers, factors driving the rising premiums, and the potential impact of more insurers withdrawing from the State; and
WHEREAS, it is crucial to assess whether the State will be left without any private insurers, and if so, what steps the State can take to mitigate the potential risks to homeowners and residents; and
WHEREAS, the State must prepare for the possibility of a universal withdrawal of private insurers from the property insurance market, including by exploring the feasibility of the State entering the market as a primary property insurance provider, either through public insurance mechanisms or other means, such as eminent domain, to acquire private insurance companies if necessary; now, therefore,
BE IT RESOLVED by the Senate of the Thirty-third Legislature of the State of Hawaii, Regular Session of 2025, that the Insurance Commissioner is requested to produce a detailed report on the current state of private insurance companies operating in Hawaiʻi; and
BE IT FURTHER RESOLVED that the report is requested to include specific findings regarding the factors that are driving the increases in premiums, particularly in high-risk areas affected by wildfires, hurricanes, and volcanic eruptions, as well as the potential cost and regulation involved if the State were to create a publicly administered insurance program; and
BE IT FURTHER RESOLVED that the report is requested to include information on the number of private entities providing property insurance in the State and information on those insurers' revenues, profits and losses, valuations, messages to shareholders, and any other information the Insurance Commissioner finds relevant to inform the Legislature about the economic health of the private property insurance industry in the State; and
BE IT FURTHER RESOLVED that the report assess the likelihood that one or more private property insurers will cease operations in Hawaiʻi and the risk that the State will be left without any private insurers; and
BE IT FURTHER RESOLVED that the report provide recommendations on the State's ability to enter the insurance market as a primary property insurance provider if private insurers exit the State, including an evaluation of whether and how the State could use eminent domain to seize private property insurance companies; and
BE IT FURTHER RESOLVED that the Insurance Commissioner is requested to submit the report to the Legislature no later than twenty days prior to the convening of the Regular Session of 2026; and
BE IT FURTHER RESOLVED that a certified copy of this Resolution be transmitted to the Insurance Commissioner.
OFFERED BY: _____________________________
OFFERED BY:
_____________________________
Report Title:
DCCA; Insurance Commissioner; Private Property Insurance; Report