Alaska has enacted a new law removing certain commercial fishing cooperative insurance agreements from state regulation, aiming to ease mounting financial pressure on the industry.
The measure, House Bill 116, became law on July 24 without the signature of Governor Mike Dunleavy.
The law exempts agreements between fishing enterprises that pool resources to cover liability claims, vessel damage, or machinery losses from being regulated as traditional insurance products. Lawmakers said the move is intended to give fishing cooperatives more flexibility in managing risk as insurance costs rise and coverage becomes harder to secure.
“With rising premiums and fewer insurance options, many in our commercial fleet are facing impossible choices,” said Representative Louise Stutes, a Republican and the bill’s sponsor, as quoted in a Best Wire report. “House Bill 116 gives them the tools to build a sustainable insurance model that puts Alaska’s fishermen first.”
The Alaska House Majority Caucus said the legislation responds to a tightening insurance market, where carriers are increasingly unwilling to underwrite older vessels. Lawmakers cited similar risk-sharing models already in use in Washington state and some Alaska municipalities.
Alaska’s seafood sector has been under sustained economic strain, with a reported $1.8 billion decline in value between 2022 and 2023. Lawmakers said higher insurance costs and reduced availability have added to the industry’s financial burden, prompting a need for alternative risk management options.
State officials had also considered establishing a formal risk pool for the industry. But then-insurance director Lori Wing-Heier said that funding such a program would be difficult, given the sector’s recent downturn. She also noted challenges in determining which vessels would qualify, especially older wooden boats that carry underwriting concerns.
Wing-Heier retired on July 15. Heather Carpenter has been appointed acting director of the Alaska Division of Insurance.
According to BestLink data, the five largest writers of ocean marine insurance in Alaska in 2024, based on direct premiums written, were American International Group (13.16%), Aspen US Insurance Group (11.95%), Travelers Group (8.86%), Liberty Mutual Insurance Companies (7.98%), and Hartford Insurance Group (7.91%).
