Hawaii state lawmakers are working to address rising homeowners insurance rates, but experts caution that meaningful relief may be difficult to achieve. As insurance costs continue to climb following disasters such as the Lahaina wildfire and California fires, officials are exploring potential solutions.
Rising Homeowners Insurance Costs Expected to Persist
Insurance experts predict that rates will remain high due to increasing natural disasters. According to insurance agent Kendrick Nishiguchi, the trajectory of insurance premiums will depend on future disaster events. If major catastrophes continue in 2025, rates may climb even higher.
Lawmakers Consider Reviving Insurance Programs
Among the proposed solutions is the potential revival of the Hawaii Property Insurance Association (HPIA) and the Hawaii Hurricane Relief Fund (HHRF). However, these efforts face structural and logistical challenges.
HPIA, which currently operates, would require restructuring to effectively address current market needs. At a joint committee hearing, HPIA Board Chair Matt Chun stated that the association is not set up to write condominium insurance, an issue that has emerged as standard carriers reevaluate their policies following the Lahaina fires.
The Hawaii Hurricane Relief Fund, on the other hand, is in the early stages of development. The board is still finalizing a contract with consultant AON, and no firm timeline has been established. HHRF Board Chair Ed Haik confirmed that the fund remains in the contracting phase.
Rep. Scot Matayoshi, chair of the House Consumer Protection & Commerce Committee, expressed frustration over delays, urging officials to consider alternative consultants if necessary.
Concerns Over Statewide Homeowners Insurance Coverage
Lawmakers acknowledge the complexity of the issue, with some warning of financial risks associated with state involvement in insurance coverage. Sen. Jarrett Keohokalole, chair of the Senate Commerce & Consumer Protection Committee, cautioned that if the state were to insure all homeowners and another major disaster occurred, it could lead to financial instability.
Multiple Bills Under Consideration
At least 10 insurance-related bills are expected to be introduced this legislative session. While lawmakers are seeking ways to alleviate the burden on homeowners, they emphasize that there is no immediate solution to the issue.
Matayoshi urged residents to manage their expectations, noting that global natural disasters are affecting the reinsurance market. He warned that while lawmakers are exploring options, the solution may not be as swift as some would hope.
Keohokalole echoed this sentiment, stating that while rapid relief is unlikely, efforts will focus on stabilizing the market and preventing further price surges.
Lawmakers will continue reviewing proposals to determine the best path to address Hawaii’s homeowners insurance crisis.