Requesting The Insurance Commissioner To Coordinate And Develop A Wildfire Insurance Compact.
The resolution aims to create a framework for wildfire insurance solutions that could enhance collaboration with other states facing similar wildfire threats. By forming a compact, the intention is to establish stronger risk management strategies for insurance companies and help maintain the viability of homeowner coverage in Hawaii, which has been threatened by the changing landscape of wildfire risks exacerbated by climate change.
HCR72 is a House Concurrent Resolution from the Thirty-second Legislature of Hawaii, which requests the Insurance Commissioner to coordinate and develop a Wildfire Insurance Compact. This initiative arises in response to the growing threat of wildfires, particularly highlighted by the devastating Lahaina wildfires that occurred on August 8, 2023. These wildfires caused extensive damage, resulting in the loss of lives, destruction of homes and businesses, and extensive economic impacts on the community and the state's insurance system.
The general sentiment around HCR72 reflects the urgency of addressing the challenges posed by wildfires in Hawaii. Stakeholders, including residents and local businesses, recognize the need for proactive measures to mitigate the risks associated with wildfires, considering the profound impacts from recent events. Local leaders support the bill for its potential to innovate insurance solutions, however, there may be concerns regarding how funds for such programs could be generated, particularly involving taxes or surcharges.
Notable points of contention include how the funding for the Wildfire Insurance Compact will be implemented, specifically whether new taxes or surcharges will be introduced. There's also a conversation surrounding the equitable distribution of benefits from the compact, ensuring that vulnerable communities are prioritized in access to insurance coverage and relief during wildfire events. The resolution emphasizes the need to mitigate risks while also providing assistance to those most affected by wildfire-related disasters.