The Alaska House of Representatives has passed a bill that would exempt certain insurance arrangements among commercial fishing cooperatives from being regulated under traditional state insurance laws, according to a report from AM Best.
House Bill 116 seeks to amend state law to exclude cooperative agreements in which fishing businesses pool resources to pay liability claims and cover losses involving vessels and equipment. The legislation passed the House unanimously and now moves to the Senate, where it has been referred to the Labor and Commerce Committee.
Supporters of the bill say it addresses ongoing difficulties in securing affordable and available insurance coverage for commercial fishing operations. According to a statement from the Alaska House Majority Caucus, conventional insurers have raised premiums and declined coverage for older vessels, creating challenges for smaller operators.
The bill’s sponsor, Rep. Louise Stutes, said the measure is intended to give commercial fishermen another option for managing risk. She said current market conditions have made it harder for vessel owners to find coverage, and pooling resources through cooperative agreements could help fill that gap.
The concept follows similar models used by municipal governments in Alaska and in Washington state’s fishing industry.
The proposal comes amid broader economic pressures on Alaska’s seafood sector. According to the House Majority Caucus, the industry experienced a $1.8 billion decline in value between 2022 and 2023. Rising insurance costs have added to financial pressures on vessel owners, lawmakers said.
The Alaska Department of Insurance declined to comment on the bill, referring inquiries to Stutes’ office, according to the report.
Earlier in the legislative session, lawmakers considered creating a formal risk pool for commercial fishermen, modeled after municipal programs. Insurance Commissioner Lori Wing-Heier said such a pool could be established but noted concerns about funding and eligibility. She said the industry’s current financial condition could limit its ability to sustain a risk pool and added that certain types of vessels, such as older wooden boats, may face market bias.
