Bill Text: HI SCR186 | 2024 | Regular Session | Introduced

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

Spectrum: Moderate Partisan Bill (Democrat 8-1)

Status: (Engrossed) 2024-04-17 - The committee(s) on CPC recommend(s) that the measure be deferred. [SCR186 Detail]

Download: Hawaii-2024-SCR186-Introduced.html

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THE SENATE	S.C.R. NO.	186
THIRTY-SECOND LEGISLATURE, 2024
STATE OF HAWAII

SENATE CONCURRENT

RESOLUTION

 

 

requesting the insurance commissioner to conduct a comprehensive study on wildfire risk and insurance, including market-based approaches.

 

 

     WHEREAS, on August 8, 2023, several large wildfires burned hundreds of acres in the North Kohala and South Kohala areas of Hawaii County and the Kula and Lahaina areas of Maui County; and

 

     WHEREAS, on the same day, the Office of the Governor issued an emergency proclamation declaring a state of emergency for the counties of Maui and Hawaii; and

 

     WHEREAS, these wildfires spread considerably quickly due to strong winds from Hurricane Dora and caused widespread damage, especially in the coastal town of Lahaina; and

 

     WHEREAS, the impacts of these wildfires led to a second emergency proclamation issued on August 9, 2023, which extended the state of emergency to all counties of the State, discouraged non-essential air travel to the island of Maui, and ordered all affected state agencies to assist as needed to provide disaster relief and avert any imminent public danger and threat, including evacuating the civilian population; and

 

     WHEREAS, on August 10, 2023, President Biden issued a presidential declaration of a major disaster for the State, ordering federal aid to supplement state and local recovery efforts in the areas affected by wildfires beginning on August 8, 2023, and continuing to this day; and

 

     WHEREAS, the August 2023 Maui wildfires devastated eighty percent of Lahaina, destroying over two thousand homes and over eight hundred places of business; and

 

     WHEREAS, as of February 2024, the death toll from the wildfires comprised one hundred one lives, while two individuals remain missing; and

 

     WHEREAS, the Department of Business, Economic Development, and Tourism's third quarter 2023 report estimated lost business revenue as a result of the August 2023 Maui wildfires at $2,700,000 per day; and

 

WHEREAS, property damage from the August 2023 Maui wildfires was initially estimated at $6,000,000,000; and

 

     WHEREAS, the August 2023 Maui wildfires not only resulted in one of the worst natural disasters in the State's history, but is also considered the fifth deadliest wildfire in United States history; and

 

     WHEREAS, efforts to reconstruct Lahaina are projected to take anywhere from five to ten years; and

 

     WHEREAS, in the aftermath of the August 2023 Maui wildfires, thousands of Lahaina residents continue to struggle with securing funds to rebuild homes, find affordable housing, and purchase everyday essential items while recovering from the health, environmental, educational, and economic impacts of the wildfires; and

 

     WHEREAS, significant issues have emerged including delayed or denied insurance claims, concurrent mortgage payments on destroyed homes, and rent for temporary housing, creating uncertainty for many residents of Lahaina that need immediate relief to rebuild their lives, homes, and businesses in the recovery process; and

 

     WHEREAS, the August 2023 Maui wildfires are changing the way insurers view Hawaii's wildfire risk, much like how Hurricane Iniki in 1992 affected the coverage of new hurricane insurance policies in the State; and

 

     WHEREAS, due to the results of climate change and the likelihood of extreme weather events in the future, wildfires have become a significant and growing hazard across the State; and

 

     WHEREAS, the increased risk of property damage stemming from wildfires may lead insurers to raise rates, refuse to provide coverage for certain losses or certain high-risk areas of the State, reduce their policy-count, or pull out of the insurance market in the State altogether; and

 

     WHEREAS, it is in the public interest to ensure the accessibility and availability of adequate insurance coverage of future losses from wildfires for the welfare and safety of residents in the State; now, therefore,

 

     BE IT RESOLVED by the Senate of the Thirty-second Legislature of the State of Hawaii, Regular Session of 2024, the House of Representatives concurring, that the Insurance Commissioner is requested to conduct a comprehensive study on wildfire risk and insurance, including market-based approaches; and

 

     BE IT FURTHER RESOLVED that the Insurance Commissioner is requested to submit a report of their findings and recommendations regarding the study of wildfire risk and insurance, including any proposed legislation, to the Legislature no later than twenty days prior to the convening of the Regular Session of 2025; and

 

     BE IT FURTHER RESOLVED that a certified copy of this Concurrent Resolution be transmitted to the Insurance Commissioner.

 

 

 

	OFFERED BY:	_____________________________

 

 

 

Report Title: 

Insurance Commissioner; Wildfire Risk and Insurance; Study; Report