SR 68 Summary

• Director of Commerce and Consumer Affairs is requested to convene a working group to study and develop strategies for restoring accessible insurance options in Hawaii's Lava Zones 1 and 2 for residents and commercial businesses.

• Working group to explore equitable premium policies, reducing Hawaii Property Insurance Association (HPIA) rates while expanding coverage to commercial businesses, subsidies for vulnerable residents, risk pooling mechanisms, and other feasible solutions.

• Working group membership includes the Director of DCCA (chair), Insurance Commissioner, one Senate member, one House member, Hawaii County Mayor, County Council Chairperson, HPIA Board Chairperson, one small business owner in lava zones, one homeowner in lava zones, and other necessary members.

• Initial meeting required by July 1, 2024, with final report and recommendations submitted to the Legislature no later than 20 days before the 2025 Regular Session convenes; working group dissolved June 30, 2025.

• Background: Universal Property and Casualty Insurance Company withdrew from Hawaii's homeowners, condominium, and renters market by August 31, 2024, affecting approximately 1,000 policyholders; HPIA replacement rates are 3-4 times higher than previous coverage.