HCR 175 Summary

• Director of Commerce and Consumer Affairs requested to convene a working group by July 1, 2024, to study and develop strategies for restoring accessible insurance options in Hawaii's Lava Zones 1 and 2.

• Working group to evaluate equitable premium pricing, reduce Hawaii Property Insurance Association (HPIA) rates, expand HPIA coverage to commercial businesses, implement subsidies for vulnerable residents, and explore risk pooling mechanisms.

• Universal Property and Casualty Insurance Company withdrawal from homeowners, condominium, and renters insurance market by August 31, 2024, impacts approximately 1,000 policyholders on Hawaii island, with remaining HPIA premiums 3-4 times higher than previous rates.

• Working group to comprise 10 members including Director of Commerce and Consumer Affairs (chair), Insurance Commissioner, one state senator, one state representative, Hawaii County Mayor, Hawaii County Council Chairperson, HPIA Board Chairperson, one affected small business owner, and one affected homeowner.

• Working group required to submit findings and recommendations to legislature no later than 20 days before 2025 regular session convening and be dissolved June 30, 2025.