The following is what I have been doing about the recent enormous insurance increases:

For those of you who did not receive my newsletter, here is an excerpt from Newsletter 24-5:

The ‘Post Fire Insurance Problem’ and what I am doing:

This is a long section, but important and you deserve the real facts!

In most condominiums in Kīhei including where I raised my 4 children, and many statewide, we are seeing an immediate 800% increase in wooden frame construction insurance rates. Housing is already too expensive, yet some people are receiving demand letters of up to $5000 and many are seeing a 60% HOA fee increase. If not fixed this will likely translate into at least a 15% increase in housing costs. Some neighbors may lose their homes other will have to move. I am extremely concerned. How is this even possible?

This is occurring because some insurance ‘admitted carriers’ have ‘non-renewed’ for wood frame structures, even brand new ones. Anticipating this insurance rate issue might occur here as it has in California, Florida and elsewhere, I submitted an insurance regulation bill in January of 2024: HB2189 would have established ratemaking regulations for insurers who base rates on wildfire risk. My protective bill was unfortunately not heard in committee.

I have taken numerous other steps: I have spoken with insurance brokers to get facts. I met twice with Insurance Commissioner ITO (DCCA) who oversees the Hawaii insurance industry, 3 times with the Speaker of the House and twice with our Governor to discuss this problem. In April Commissioner Ito said House bill 2686 should help fix this, and as a backstop, he could activate the hurricane relief fund and raise the $400,000 cap on HPIA (Hawaii Property Insurance Association) to $750,000 and allow them to do commercial insurance as well.

It sounded like I was making progress but HB2686 died in Conference hearings with the Senate :-( also many housing complexes exceed $100 Million in value. I have continued conversations with our Senator and my House colleagues, but for 2024 that particular bill is dead. (update: See note below on Emergency Proclamation!)

Not willing to quit, I went to the Speaker of the House about this issue again. He said he thought the market would stabilize. I don’t feel we can wait for that ‘maybe’ given the seriousness of the issue. I had more meetings with the Insurance Commissioner the Speaker of the House and our Senator.

Then I elevated the issue further: I met with our Governor Josh Green who is taking this very seriously and agreed with me that a special session of the legislature this summer would likely be the way to fix this. I don’t think we can wait until 2025. Do you?

Minutes after Gov and I met, to his credit he publicly brought up this issue in a TV press conference on 5/2, (Thank you Josh!) and then my Chief of Staff Dr. Joe Ritter (my Chief of Getting Sh*t Done) met one on one with Governor Green that same evening: Dr. Joe briefly presented some legal solutions used in other states as the two discussed my suggestion of a special emergency legislative session this summer to fix this serious problem. Reviving legislation I submitted in January might be one step in fixing this. Just two days ago I met again with our Governor who is taking this seriously and affirmed our previous discussion. I immediately also met again with the Speaker of the House. It is my hope that the Senate President and Speaker will agree to call a ‘special emergency legislative session.’ My colleagues will blame me for that, OK by me! A special session is by no means certain, but I am pushing for it and will ask for your help in that. (UPDATE: no emergency session called as of August)

I refuse to stand by and just do nothing while insurance carriers charge us exorbitant rates!

You deserve honest facts: These unprecedented rate hikes are already making high housing costs even higher statewide and may jeopardize ownership for some. The estimate in my district is a 15% increase in costs. My staff and I are actively working to gather information and find solutions. Please email me any documents you receive regarding rate hikes for your property.

This is a tough issue. I wish I had a full solution to report. For right now this is where we are.

My team and I are working diligently on this issue. I promise to stay vigilant and fight for you.

UPDATE: August 2024

I have continued to be very vocal abnout this at the Capitol. Some results:

I spoke with the Governor and No emergency session has been scheduled -- yet.
An Insurance Commission 'task force' was formed including Insurance Commisioner Ito. CONTACT
After initial work, the recommendation from the Joint Executive and Legislative Task Force is here.
Commission recommends Governor emergency Proclamation.
An executed copy of the Emergency Proclamation can be found here.