Requesting That The Department Of Commerce And Consumer Affairs Compile Pertinent Data To Determine The Appropriate Scope Of A Study Analyzing Whether Implementation In This State Of Laws Similar To Captive Insurance Laws Of Massachusetts Would Address This State's Residential Condominium Property Insurance Needs.
By proposing a study into captive insurance laws, SCR48 could potentially offer a new solution to Hawaii’s condominium property insurance challenges. This approach suggests a shift from traditional insurance models towards more tailored and potentially affordable options for residents facing financial strain due to high premiums. The resolution calls for a comprehensive survey of apartment owners within specified condominium properties to assess the viability of a Massachusetts-style captive insurance model in addressing these insurance issues.
SCR48 is a Senate Concurrent Resolution requesting the Department of Commerce and Consumer Affairs to collect data to evaluate the feasibility of implementing a captive insurance system in Hawaii similar to that of Massachusetts. The bill addresses the rising costs associated with residential condominium property insurance that has markedly increased since 2021. The significant insurance hikes are attributed to local ordinances in Honolulu mandating automatic fire sprinkler systems in condo buildings, which, despite some associations opting out, have led to increased premiums for nearly all condominium properties.
There appears to be a supportive sentiment among the stakeholders regarding the need for alternative insurance solutions. Advocates of SCR48, including property associations, express a strong belief that traditional insurance markets are failing them, thus highlighting the urgency for legislative intervention. However, skepticism may arise surrounding the transition to a captive insurance model and questions about its effectiveness compared to existing measures.
One notable point of contention is embedded in the local ordinances that necessitate fire safety requirements that are causing the insurance rates to soar. While some associations might pursue alternative fire safety measures, the overarching concern remains about the adequacy of current insurance offerings. The debate over implementing a captive insurance model raises questions regarding its practicality and acceptance among the various stakeholders involved, particularly in a state context where insurance costs are at the forefront of community concern.