Maui wildfires spark insurance crisis in Hawaii, state races to address soaring premiums

By Duane Shimogawa

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    MAUI COUNTY, Hawaii (KITV) — The Maui wildfires has catapulted Hawaii into the same insurance category as other higher-risk states across the country such as California and Florida.

Condominium insurance premiums are skyrocketing and insurers are leaving the state. Experts say the state is in a crisis situation and will have to adjust quickly.

The Hawaii Economic Association held a webinar Thursday to discuss the issue. State lawmakers formed a working group late last year to come up with ideas to curb the rising costs. That led to the creation of Senate Bill 2686, which eventually died this session.

“There are significant risks that are getting different every day and we just have to protect ourselves as much as we can,” said Mike Onofrietti, vice chair with the Hawaii Insurers Council, “that’s taking care of our own units, making our homes resilient, all of those sorts of things are the best defense both from climate change as well as to make our insurance premiums as low as they can be.”

Besides the Maui wildfires, Hawaii had already been dealing with some challenges including the fact that the state only has three Hawaii-licensed insurers handling a majority of the condo buildings here.

Governor Josh Green plans to create a task force to monitor the situation and possibly take administrative action if things get worse.

The goal of the task force would also be to draft legislation for the 2025 Legislative Session.

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