Hawaii Governor Issues Proclamation to Stabilize the Insurance Market

To say the least, Hawaii’s insurance market is volatile. The wildfire that tore through Maui a year ago set the market spinning out of control. Rates for insurance for condos rose over 1,000% in some cases. Other properties saw very high increases, too.

Governor Josh Green says he’s seen enough.

He signed an emergency proclamation last week to give condo associations and others more options to pick up property insurance and hurricane coverage. To accomplish the goal, and among other things, the proclamation suspends several insurance laws.

One of Hawaii’s biggest problems is that it has a very small insurance market, real estate costs that are quite high and what most insurers call a unique risk profile.

The proclamation will allow the Hawaii Hurricane Relief Fund (HHRF) to issue hurricane policies and set limits for large condo buildings. The HHRF and the state’s insurer of last resort, the Hawaii Property Insurance Association, will be able to take out loans to help condo associations get property and hurricane insurance.

“This emergency proclamation is a critical step to stabilize our insurance market and protect our residents from further financial strain,” Green said. “By working closely with industry experts, federal partners, and legislative leaders, we aim to ensure that Hawaii remains a viable and secure place to live, even in the face of global insurance challenges.”

Source link: Insurance Business America — https://bit.ly/4dlN29o