Hawaii Senate Bill SR160

Hawaii 2024 Regular Session

• Introduced: 3/8/24
• Refer: 3/14/24
• Report Pass: 4/3/24
• Passed: 4/4/24

Caption

Requesting The Insurance Commissioner To Conduct A Comprehensive Study On Wildfire Risk And Insurance, Including Market-based Approaches.

Impact

The resolution aims to address the insurance industry's responses to wildfire risks, especially in light of recent devastating fires. Insurance options for residents may become limited due to growing fears among insurers about increased costs and risks associated with offering coverage in high-risk areas. By mandating a study, SR160 seeks to provide insights into how state policy can adapt to ensure that residents have access to adequate coverage, thereby safeguarding community welfare and safety.

Summary

Senate Resolution 160 requests the Insurance Commissioner of Hawaii to conduct a comprehensive study on wildfire risks and insurance solutions, particularly market-based approaches. This resolution comes in response to the catastrophic wildfires that occurred in August 2023, which severely impacted areas like Lahaina, causing extensive property damage and loss of life. With the increasing incidence of wildfires, the resolution highlights the necessity for improved understanding and management of insurance policies concerning wildfire risks in Hawaii.

Contention

Key points of contention that may arise from this study include disagreements on the methodologies used to assess risks, the affordability of insurance in high-risk areas, and the potential for proposed regulations to impact the market dynamics. Insurers might resist regulatory changes that require them to offer coverage under conditions they consider risky, which could lead to higher premiums or withdraw from certain markets altogether. Stakeholders will need to balance the economic viability for insurers with the critical need for accessible insurance for residents affected by wildfires.