SR 111: URGing the insurance division of the Department of commerce and consumer affairs and department of the attorney general TO convene a working group to identify feasible options and mechanisms to protect the State and its residents against the effects of climate change on the availability and affordability of insurance.

THE SENATE	S.R. NO.	111
THIRTY-THIRD LEGISLATURE, 2026		S.D. 1
STATE OF HAWAII

SENATE RESOLUTION

 

 

URGing the insurance division of the Department of commerce and consumer affairs and department of the attorney general TO convene a working group to identify feasible options and mechanisms to protect the State and its residents against the effects of climate change on the availability and affordability of insurance.

 

 

     WHEREAS, climate disasters have caused widespread harm to the State and its residents, including the destruction of homes and property, loss of wages, escalating insurance costs and losses, depletion of public resources, and injuries to the health, safety, and livelihoods of residents of the State; and

 

     WHEREAS, climate disasters threaten the functionality of the regular insurance market and the residual market, or "insurers of last resort", like the Hawaii Property Insurance Association, as well as taxpayer resources in the state-funded Hawaii Hurricane Relief Fund; and

 

     WHEREAS, property and casualty insurance providers have been destabilized by increasingly severe climate disasters, which has led to increased nonrenewal rates and premiums across the State; and

 

     WHEREAS, access to affordable insurance is necessary for the stability and financial health of residents of the State, but is threatened by increasing nonrenewal rates and rapidly rising premiums; and

 

     WHEREAS, there is a compelling state interest in preserving insurance market stability, essential coverage for property owners and lenders, and affordable housing for the State's residents; and

 

     WHEREAS, the climate disasters underlying the insurance crisis in the State are the result of a coordinated campaign of deception launched and orchestrated by major fossil fuel companies.  These companies have known for decades that their products cause global warming and increase the frequency and severity of climate disasters.  Despite this knowledge, these companies concealed and misrepresented the associated risks, sowed confusion, and failed to warn the public of the dangers created and exacerbated by their products; and

 

     WHEREAS, the consequence of this deceptive conduct by responsible parties is making insurance coverage harder to obtain and less affordable in the State; and

 

     WHEREAS, the costs of these climate disasters should be borne by those responsible for causing them, rather than taxpayers, insurance policyholders, and residents harmed by the climate disasters; and

 

     WHEREAS, insurers and injured parties have previously pursued claims against responsible parties related to the opioid epidemic, big tobacco, and other major parties responsible for widespread damages affecting insurance premiums to ensure that the burden of financial loss does not fall solely on policyholders and taxpayers; and

 

     WHEREAS, many cities, counties, and states in the United States have filed lawsuits accusing companies in the fossil fuel industry of deceptive marketing, misleading shareholders, and culpability for climate damages; and

 

     WHEREAS, this body finds that it is critical to address climate-related impacts to the State due to the State's vulnerability to extreme weather events and climate change; now, therefore,

 

     BE IT RESOLVED by the Senate of the Thirty-third Legislature of the State of Hawaii, Regular Session of 2026, that the Insurance Division of the Department of Commerce and Consumer Affairs and Department of the Attorney General are urged to convene a working group to identify feasible options and mechanisms to protect the State and its residents against the effects of climate change on the availability and affordability of insurance; and

 

     BE IT FURTHER RESOLVED that the working group is requested to:

 

     (1)  Assess the State's and residents' insurance exposure to extreme weather events and natural disasters that may be impacted by climate change;

 

     (2)  Identify existing mechanisms available to the State and residents for recovery; and

 

     (3)  Identify and analyze the legal means available to the State, including the Attorney General, to seek recovery from responsible parties, including large oil and gas companies, to address insurance exposures identified by the working group; and

 

     BE IT FURTHER RESOLVED that the working group's membership is requested to consist of the following members or their designees:

 

     (1)  The Insurance Commissioner;

 

     (2)  The Attorney General;

 

     (3)  The Chair of the Senate Standing Committee on Commerce and Consumer Protection;

 

     (4)  The Chair of the House Standing Committee on Consumer Protection and Commerce;

 

     (5)  Interested Senators and Representatives who may be invited by the Chair of the working group;

 

     (6)  The Administrator of the Hawaii Hurricane Relief Fund;

 

     (7)  The Administrator of the Hawaii Property Insurance Association;

 

     (8)  The Director of the Office of Planning and Sustainable Development;

 

     (9)  Chief of the Hawaii Office of Recovery and Resiliency; and

 

    (10)  Experts with relevant knowledge who may be invited by the Chair of the working group; and

 

     BE IT FURTHER RESOLVED that the members of the working group are requested to elect a chair and vice chair of the working group from amongst themselves; and

 

     BE IT FURTHER RESOLVED that the working group, with the administrative assistance of the Insurance Division of the Department of Commerce and Consumer Affairs and Department of the Attorney General, is requested to share its findings and recommendations, including any proposed legislation, with the Senate Standing Committee on Commerce and Consumer Protection and House Standing Committee on Consumer Protection and Commerce no later than twenty days prior to the convening of the Regular Session of 2027; and

 

     BE IT FURTHER RESOLVED that the working group be dissolved on June 30, 2027; and

 

     BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the Insurance Commissioner, Attorney General, Chair of the Senate Standing Committee on Commerce and Consumer Protection, Chair of the House Standing Committee on Consumer Protection and Commerce, Director of the Office of Planning and Sustainable Development, Administrator of the Hawaii Hurricane Relief Fund, Administrator of the Hawaii Property Insurance Association, and Chief of the Hawaii Office of Recovery and Resiliency.

 

 

Report Title: 

Climate Change; Impacts; Insurance; Cost Recovery; Study; Working Group

THE SENATE	S.R. NO.	111
THIRTY-THIRD LEGISLATURE, 2026
STATE OF HAWAII

SENATE RESOLUTION

 

 

URGing the insurance division of the Department of commerce and consumer affairs and department of the attorney general TO convene a working group to identify feasible options and mechanisms to protect the State and its residents against the effects of climate change on the availability and affordability of insurance.

 

 

     WHEREAS, climate disasters have caused widespread harm to the State and its residents, including the destruction of homes and property, loss of wages, escalating insurance costs and losses, depletion of public resources, and injuries to the health, safety, and livelihoods of residents of the State; and

 

     WHEREAS, climate disasters threaten the functionality of the regular insurance market and the residual market, or "insurers of last resort", like the Hawaii Property Insurance Association, as well as taxpayer resources in the state-funded Hawaii Hurricane Relief Fund; and

 

     WHEREAS, property and casualty insurance providers have been destabilized by increasingly severe climate disasters, which has led to increased nonrenewal rates and premiums across the State; and

 

     WHEREAS, access to affordable insurance is necessary for the stability and financial health of residents of the State, but is threatened by increasing nonrenewal rates and rapidly rising premiums; and

 

     WHEREAS, there is a compelling state interest in preserving insurance market stability, essential coverage for property owners and lenders, and affordable housing for the State's residents; and

 

     WHEREAS, the climate disasters underlying the insurance crisis in the State are the result of a coordinated campaign of deception launched and orchestrated by major fossil fuel companies.  These companies have known for decades that their products cause global warming and increase the frequency and severity of climate disasters.  Despite this knowledge, these companies concealed and misrepresented the associated risks, sowed confusion, and failed to warn the public of the dangers created and exacerbated by their products; and

 

     WHEREAS, the consequence of this deceptive conduct by responsible parties is making insurance coverage harder to obtain and less affordable in the State; and

 

     WHEREAS, the costs of these climate disasters should be borne by those responsible for causing them, rather than taxpayers, insurance policyholders, and residents harmed by the climate disasters; and

 

     WHEREAS, insurers and injured parties have previously pursued claims against responsible parties related to the opioid epidemic, big tobacco, and other major parties responsible for widespread damages affecting insurance premiums to ensure that the burden of financial loss does not fall solely on policyholders and taxpayers; and

 

     WHEREAS, many cities, counties, and states in the United States have filed lawsuits accusing companies in the fossil fuel industry of deceptive marketing, misleading shareholders, and culpability for climate damages; and

 

     WHEREAS, this body finds that it is critical to address climate-related impacts to the State due to the State's vulnerability to extreme weather events and climate change; now, therefore,

 

     BE IT RESOLVED by the Senate of the Thirty-third Legislature of the State of Hawaii, Regular Session of 2026, that the Insurance Division of the Department of Commerce and Consumer Affairs and Department of the Attorney General are urged to convene a working group to identify feasible options and mechanisms to protect the State and its residents against the effects of climate change on the availability and affordability of insurance; and

 

     BE IT FURTHER RESOLVED that the working group is requested to:

 

     (1)  Assess the State's and residents' insurance exposure to extreme weather events and natural disasters that may be impacted by climate change;

 

     (2)  Identify existing mechanisms available to the State and residents for recovery; and

 

     (3)  Identify and analyze the legal means available to the State, including the Attorney General, to seek recovery from responsible parties, including large oil and gas companies, to address insurance exposures identified by the working group; and

 

     BE IT FURTHER RESOLVED that the working group's membership is requested to consist of the following members or their designees:

 

     (1)  The Insurance Commissioner;

 

     (2)  The Attorney General;

 

     (3)  The Chair of the Senate Standing Committee on Commerce and Consumer Protection;

 

     (4)  The Chair of the House Standing Committee on Consumer Protection and Commerce;

 

     (5)  Interested Senators and Representatives who may be invited by the Chair of the working group;

 

     (6)  The Administrator of the Hawaii Hurricane Relief Fund;

 

     (7)  The Administrator of the Hawaii Property Insurance Association;

 

     (8)  The Director of the Office of Planning and Sustainable Development; and

 

     (9)  Experts with relevant knowledge who may be invited by the Chair of the working group; and

 

     BE IT FURTHER RESOLVED that the members of the working group are requested to elect a chair and vice chair of the working group from amongst themselves; and

 

     BE IT FURTHER RESOLVED that the working group, with the administrative assistance of the Insurance Division of the Department of Commerce and Consumer Affairs and Department of the Attorney General, is requested to submit a report of its findings and recommendations, including any proposed legislation, to the Legislature no later than twenty days prior to the convening of the Regular Session of 2027; and

 

     BE IT FURTHER RESOLVED that the working group be dissolved on June 30, 2027; and

 

     BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the Insurance Commissioner, Attorney General, Chair of the Senate Standing Committee on Commerce and Consumer Protection, Chair of the House Standing Committee on Consumer Protection and Commerce, Director of the Office of Planning and Sustainable Development, Administrator of the Hawaii Hurricane Relief Fund, and Administrator of the Hawaii Property Insurance Association.

 

 

 

	OFFERED BY:	_____________________________

 

 

 

Report Title: 

Climate Change; Impacts; Insurance; Cost Recovery; Study; Working Group