STAND. COM. REP. NO. 1602

Honolulu, Hawaii

RE: S.C.R. No. 198

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committees on Commerce and Consumer Protection and Agriculture and Environment, to which was referred S.C.R. No. 198 entitled:

"SENATE CONCURRENT RESOLUTION ENCOURAGING HAWAII INSURERS AND THE HAWAII PROPERTY INSURANCE ASSOCIATION TO REDUCE INSURANCE COSTS ON LOCAL RESIDENTS BY PURSUING SUBROGATION CLAIMS AGAINST POLLUTERS KNOWINGLY RESPONSIBLE FOR WORSENING CLIMATE IMPACTS AFFECTING HAWAII INSURANCE RATES,"

beg leave to report as follows:

The purpose and intent of this measure is to encourage Hawaii insurers and the Hawaii Property Insurance Association to reduce insurance costs on local residents by pursuing subrogation claims against polluters knowingly responsible for worsening climate impacts affecting Hawaii insurance rates.

Your Committees received testimony in support of this measure from the Center for Climate Integrity, Kauai Climate Action Coalition, Climate Protectors Hawaii, Environmental Caucus of the Democratic Party of Hawaiʻi, 350Hawaii.org, and forty-two individuals.

Your Committees received comments on this measure from the Hawaii Cattlemen's Council. Inc.

Your Committees find that the increase in climate-related disasters and risks have contributed significantly to the destabilization of the State's insurance industry, particularly in the property and casualty insurance sector. This has led to a rise in insurance premiums and non-renewal rates. Your Committees also find that insurers have previously pursued claims against those responsible for the national opioid epidemic, as well as big tobacco companies. Similarly, claims against parties responsible for the current state of Hawaiiʻs insurance market should also be pursued to ensure that the burden of financial loss does not fall solely on the policyholders and taxpayers. By encouraging the Hawaii Property Insurance Association to subrogate claims on behalf of its policyholders to recover losses, this measure demonstrates the State's interest in the stability of Hawaii's insurance market and an effort to limit costly rate hikes for property owners who have no other insurance options.

Your Committees have amended this measure by:

(1) Clarifying that Hawaii insurers and the Hawaii Property Insurance Association are encouraged to pursue subrogation claims against polluters who knowingly engaged in misleading and deceptive practices regarding the connection between their products and climate change;

(2) Amending its title accordingly; and

(3) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the records of votes of the members of your Committees on Commerce and Consumer Protection and Agriculture and Environment that are attached to this report, your Committees concur with the intent and purpose of S.C.R. No. 198, as amended herein, and recommend its adoption in the form attached hereto as S.C.R. No. 198, S.D. 1.

Respectfully submitted on behalf of the members of the Committees on Commerce and Consumer Protection and Agriculture and Environment,

________________________________ MIKE GABBARD, Chair

________________________________ JARRETT KEOHOKALOLE, Chair