(BIVN) – An insurance coverage crisis impacting residents in Puna was the topic of discussion in Hilo on Wednesday, as the Hawaiʻi County Council voted in support of resolution urging the State take immediate action.
Puna councilwoman Ashley Kierkiewicz introduced Resolution 223 aiming to address insurance accessibility on Hawaiʻi island, especially in Lava Zone 1 and 2, in the wake of the withdrawal of Universal Property and Casualty Insurance Co. from the Hawaiʻi market.
“There are 1,500 folks that are impacted by Universal pulling out of the region,” Kierkiewicz said during Wednesday’s meeting. “1,000 of those policies are on Hawaiʻi island. 900 are in Lava Zone 2 in Puna. So this is significant. It is going to destabilize families and households. Its going to impact the economy.”
From the language of Resolution 223:
A RESOLUTION STRONGLY URGING IMMEDIATE ACTION BY THE HAWAIʻI STATE LEGISLATURE, DEPARTMENT OF COMMERCE & CONSUMER AFFAIRS, AND HAWAIʻI PROPERTY INSURANCE ASSOCIATION TO ADDRESS INSURANCE ACCESSIBILITY ON HAWAIʻI ISLAND, PARTICULARLY IN LAVA ZONES 1 AND 2.
WHEREAS, a stable and accessible insurance market is of critical importance for residents of Hawaiʻi Island, residing in or operating a commercial business in Lava Zones 1 and 2; and
WHEREAS, the recent decision by Universal Property and Casualty Insurance Co. to withdraw from the Hawaiʻi market has left residents in these lava zones without viable insurance options, posing significant challenges to their financial security and quality of life; and
WHEREAS, the lack of affordable insurance particularly impacts vulnerable individuals and families with limited incomes, and those aspiring to purchase property through financing; and
WHEREAS, Hawaiʻi Property Insurance Association is considered to be the insurance carrier of last resort for residential properties, but currently offers no policy options for commercial enterprises; and
WHEREAS, Hawaiʻi’ s insurance market must be robust, accessible, and equitable for all; and
WHEREAS, it is imperative that prompt action be taken and potential solutions are explored, in order to resolve this pressing issue, safeguard the financial well-being of residents, and foster economic stability throughout our communities; now, therefore
BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF HAWAIʻI that it strongly urges the Hawaii State Legislature, Department of Commerce & Consumer Affairs, Insurance Division, and Hawaiʻi Property Insurance Association to take immediate and decisive action to address the insurance challenges faced by residents of Hawaiʻi Island, residing in or operating a commercial business in Lava Zones 1 and 2.
BE IT FURTHER RESOLVED that the Hawaiʻi State Legislature, Department of Commerce Consumer Affairs, Insurance Division, and Hawaii Property Insurance Association (HPIA), explore various means of assisting affected residents, including: a) increasing HPIA policy premiums and expanding coverage to include commercial businesses, b) implementing subsidies or financial assistance programs to mitigate the financial burden for vulnerable residents in Lava Zones 1 and 2, and c) exploring the creation of a risk pooling mechanism.
BE IT FURTHER RESOLVED that the Hawaiʻi State Legislature and Department of Commerce & Consumer Affairs, Insurance Division, explore and consider adapting successful aspects of the National Flood Insurance Program into HPIA’ s structure, including risk-based pricing and community rating systems to ensure property owners are protected and lenders’ investments are secured.
BE IT FURTHER RESOLVED that the Hawaiʻi State Legislature and Department of Commerce & Consumer Affairs, Insurance Division, convene relevant stakeholders, including insurance carriers, financial experts, and community representatives, to devise comprehensive strategies that restore accessible insurance options in Lava Zones 1 and 2.
BE IT FINALLY RESOLVED that the County Clerk shall transmit copies of this resolution to the Honorable Governor Josh Green, M.D.; the Honorable Members of the Hawaiʻi State Legislature; Nadine Ando, Director of the Hawaiʻi State Department of Commerce & Consumer Affairs; Gordon Ito, Hawaiʻi State Insurance Commissioner; and the Administrator and Board of Directors of the Hawaiʻi Property Insurance Association.
The Council voted in favor of the resolution.
