HONOLULU (KHON2) — Insurance premiums skyrocketed in 2024 because of 28 natural disasters around the country last year and the $95 billion paid out in premiums. State lawmakers said they’re trying to help, but relief is still a while away.
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Hurricane Milton hit Florida so hard, we’ll feel it thousands of miles away here in Hawaii.
“We don’t know how that’s going to affect us, but in the past, when things have hit Florida, they’ve affected us here maybe only five percent, six percent, 7seven percent,” said Sue Savio, insurance agent. “So we saw some rate increases, but not anywhere near as bad as when we had our own catastrophe.”
Former Hawaii residents among those hunkering down in Florida Insurance agent Sue Savio explained insurance companies spread their risk across the country. So just like the rest of the country paid for the Lahaina wildfires in their increased insurance premiums, we should expect to pay for damage done by Milton and Helene.
“I was hoping that we were going to see rates come down a little bit next year,” said Savio. “Now I’m not so sure. Now I’m hoping they’ll just stay the same and not go up.”
“I can say is that we all hear from our constituents and we very much understand what is happening and the pain that everyone’s going through regarding condominium insurance,” said Rep. Adrian Tam, Waikiki (D).
Lawmakers said they passed a couple of bills last legislative session to help, by studying insurance pricing and giving condos some financing flexibility to make improvements. There are also two task forces.
“The members of the task forces are focused and keen on addressing the underlying risks that are driving up these insurance premiums,” said Rep. Jackson Sayama, St Louis, Palolo, Kaimuki (D).
“We want to try to find a good way forward so that we can do this right and to make sure that this actually solves the problem,” said Tam.
Lawmakers acknowledge these are long-term solutions. They said unfortunately, there’s not a lot they can do for the short term.
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“I don’t want to give the wrong impression that there’s a silver bullet to this insurance crisis,” said Sayama. “Quite frankly, there isn’t. People just have to chip away at these small things. And that makes a difference long term.”
“It is a serious problem and I understand everybody is hurting on paying these premiums,” said Savio. “But just like in Iniki, it won’t be forever, hopefully, because there are catastrophes that will settle down, hopefully.”
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