Hawaii lawmakers are set to consider a series of insurance-related bills during the upcoming legislative session, including proposals to make the insurance commissioner an elected position and measures aimed at stabilizing the property insurance market, according to a report from BestWire.
Insurance commissioner election proposal
House Bill 23 aims to transition the insurance commissioner role from an appointed to an elected position, beginning with the 2026 general election.
The bill proposes a four-year term with no limit on reelection. If the position becomes vacant before the 2026 general election, the governor would appoint a temporary commissioner. Scott Saiki was appointed to the role in July following the retirement of Gordon Ito.
The shift could increase public accountability but may also introduce political considerations into regulatory decision-making, the report said.
Condominium coverage and market stability
Several bills address condominium insurance coverage. House Bill 426 would allow the Hawaii Property Insurance Association and the hurricane relief fund to extend coverage to condominiums for a five-year period, while the insurance department studies long-term solutions.
House Bill 589, which was carried over from 2025, would create the Hawaii Condominium Mutual Insurance Co., scheduled to launch by Jan. 1, 2027, providing coverage for condo owners who struggle to obtain policies in the traditional market. The bill also establishes a condo loan fund to assist associations facing large premium increases, funded by the state's general fund.
Meanwhile, House Bill 590 would require insurers to offer discounts for risk mitigation measures and justify any premium increases exceeding 10%. These measures aim to expand coverage options for condo owners, while also encouraging proactive risk management.
Homeowner protections and assistance programs
There are also other bills that focus on homeowners. House Bill 1474 seeks to establish a temporary Insurance Affordability Assistance pilot program for those facing premium increases of at least 25% and experiencing financial hardship, offering grants of up to $5,000 or 50% of the premium increase.
House Bill 20 would create the Lava Zone Insurance Fund to provide limited-time subsidies for low-income homeowners, excluding investment properties.
Transparency and accountability measures
Meanwhile, House Bills 254 and 255 would increase transparency in insurance pricing and polucy changes. HB 254 would require insurers to explain any policy cancelation, nonrenewal or premium increase over 10% and to submit rate schedules to the commissioner, while also mandating public reporting and dispute resolution.
Meanwhile, HB 255 will apply similar measures specifically to condo associations, including retrospective reporting for premium increases from 2022 to 2024.
Influencing market dynamics
According to the report, the bills could influence market dynamics by expanding access to coverage, incentivizing risk mitigation and increasing regulatory oversight. Policyholders may benefit from more affordable options and protections against unexpected premium spikes, while insurers may need to adjust pricing models, coverage strategies and risk assessment practices to remain competitive.
