Hawaii 2025 Regular Session

Hawaii Senate Bill SR125

Introduced

3/7/25

Refer

3/12/25

Report Pass

4/2/25

Passed

4/3/25

Caption

Requesting The Insurance Commissioner To Produce A Detailed Report Regarding The State Of The Private Property Insurance Industry In Hawaii.

Impact

The resolution calls for an assessment of critical factors such as the driving forces behind premium increases, particularly in high-risk areas. It aims to understand the financial health of private insurers and evaluate the potential impact of diminished participation of these companies in the market. The bill stands as a necessary response to ensure that the state is well-prepared to safeguard homeowners from potential risks associated with the withdrawal of private property insurance providers.

Summary

Senate Resolution 125, presented in the Thirty-third Legislature of Hawaii, requests the Insurance Commissioner to produce an in-depth report regarding the current state of the private property insurance industry in Hawaii. The backdrop to this resolution is the increasing frequency of natural disasters, such as hurricanes, wildfires, and volcanic eruptions, which have significantly raised insurance premiums. This situation has led to concerns about the operating viability of private insurers in the state, with some considering withdrawing from the market altogether.

Conclusion

The resolution challenges the legislature to gain a comprehensive understanding of Hawaii's insurance landscape, with the report expected to provide clarity on the economic health of the industry and the risk of a loss of essential coverage for homeowners. The outcomes of this initiative could shape Hawaii’s approach to disaster-related risks and the overall management of the property insurance market in the forthcoming years.

Contention

A notable point of contention within the bill is the suggestion for the state to evaluate its ability to enter the insurance market as a primary property insurance provider. This includes studying the feasibility of establishing a public insurance mechanism or utilizing eminent domain to potentially acquire private insurance companies. Such measures, while aimed at ensuring coverage for residents, could also spark debates about governmental overreach and the implications for taxpayers if public insurance programs are created in response to private insurer exits.

Latest SR125 Activity

Companion Bills

HI SCR155

Same As Requesting The Insurance Commissioner To Produce A Detailed Report Regarding The State Of The Private Property Insurance Industry In Hawaii.

Previously Filed As

HI HCR173

Requesting The Insurance Commissioner To Convene A Working Group To Assess The Feasibility And Impact Of Requiring Coverage For Commercial Properties And Structures, Including Greenhouses And Shade Houses, Under The Hawaii Property Insurance Association's Plan Of Operation.

HI SR106

Requesting The Hawaii Hurricane Relief Fund And The Insurance Commissioner To Assess The Impacts Of Climate Change On Homeowner's Insurance.

HI SR68

Requesting The Director Of Commerce And Consumer Affairs To Convene A Working Group To Study And Devise Comprehensive Strategies To Restore Accessible Insurance Options To Residents And Commercial Businesses In Lava Zones 1 And 2.