Hawaiʻi Enacts Act 296 to Stabilize Property Insurance Market

Hawaiʻi has enacted Act 296, aimed at stabilizing the state's property insurance market amid sharply rising premiums and limited coverage options. The legislation expands the Hawaiʻi Hurricane Relief Fund to include condominium buildings, addressing insurance availability challenges exacerbated by recent environmental hazards, such as the 2023 Maui wildfire.

This fund was originally established in 1993 following Hurricane Iniki to aid homeowners with hurricane coverage. The state's move responds to broader trends of increased insurance costs reflecting higher claims from climate-related perils nationwide, as confirmed by the U.S. Department of the Treasury's analysis of 2018-2022 data. Act 296 represents a targeted market intervention to alleviate the burden on homeowners facing unsustainable premium spikes linked to escalating risk exposures.

Hawaiʻi officials, including Senate Commerce and Consumer Protection Committee Chair Jarrett Keohokalole, have highlighted the bill's role in providing critical relief to residents impacted by soaring property insurance costs. This legislative effort exemplifies state-level action aimed at enhancing insurance market resilience and affordability in the face of evolving environmental risk factors and coverage gaps.