Latest news with #LahainaGlobalSettlement
Yahoo
08-02-2025
- Business
- Yahoo
How does Hawaii plan to battle rising insurance rates?
HONOLULU (KHON2) — Insurance companies nationwide are hiking rates to keep up with escalating risks for more frequent, fierce climate-driven disasters like hurricanes and met with Hawaii's Acting Insurance Commissioner, Jerry Bump, to see how bad it is in the islands. 'It really varies from carrier to carrier. Some have been more proactive with rate increases on a smaller scale. From 10 to 15 percent per year,' said Bump. Hawaii Supreme Court hears arguments over Lahaina wildfire victims' global settlement As rates grow, coverage shrinks from some providers — none of whom have pulled out of the Hawaii market completely nor cut off whole neighborhoods like what happened to many in Palisades, Calif. just before January's disaster. 'So there may be individuals who get nonrenewal notices because the carrier hasn't pulled out of the market. It's still writing in other areas, but maybe it's limiting the type of structure it wants to write or avoid areas that are in flood zones.' The Insurance Division's Online Premium Comparison Guides may be complicated to decipher, but they show consumers how much prices can vary between dozens of regulated carriers for the same coverage. It's meant to help homeowners, condo owners and even renters shop around. 'We're looking very closely at rate filings, scrutinizing those working with insurers to hopefully minimize those rate increases that they're filing for,' Bump added. Deal reached: How will the $4B Lahaina Global Settlement be split for fire victims? But a whole bunch of coverage happens outside the state's kuleana, especially condo associations, which are layers of coverage that regulators cannot control. 'They turn to what we call the surplus lines market, and they are able to still find coverage, but it's at rates that might be much higher than what we traditionally have seen.' Governor Josh Green tasked the Hawaii Hurricane Relief Fund's board with setting up a state-based alternative. 'We're in an emergency, but we're not moving like there's an emergency,' said Senator Jarrett Keohokalole, Committee on Commerce and Consumer Protection. KHON2 has asked the commissioner if he can push the board and its contractor to hurry it up. Check out more news from around Hawaii 'They have laid out a timeline where they want to get policies out to the market by summer.' We will continue to follow up on ways for the state to facilitate and for consumers to find more affordable and attainable coverage to get out of this insurance emergency. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
07-02-2025
- Business
- Yahoo
Hawaii Supreme Court hears arguments over Lahaina wildfire victims' global settlement
HONOLULU (KHON2) — The fate of the $4 billion 'Global Settlement' for Lahaina wildfire victims is now in the hands of the Hawaii Supreme Court. Whatever the court decides could have a big impact on everyone in Hawaii. Download the free KHON2 app for iOS or Android to stay informed on the latest news The $4.037 billion Global Settlement was announced in August. On Thursday, Feb, 6, the Hawaii Supreme Court finally had the opportunity to question lawyers about the legality of it. 'It seems like you're crashing directly into State Farm,' said Justice Todd Eddins. Deal reached: How will the $4B Lahaina Global Settlement be split for fire victims? 'If 66-10 does not apply, there's not a tort suit filed, then other subrogation rights would apply, is that correct,' asked Justice Lisa Ginoza. 'What's wrong with this proceeding that it's somehow prejudicial,' asked Chief Justice Mark Recktenwald. At question – are insurance companies allowed to collect money from those at fault for the fires? They said the Global Settlement blocks them from doing that. 'They've been involved every step of the way, they just want a bigger piece of the pie,' said Jesse Creed, attorney for fire victims. 'That's what it comes down to. It's money for them.' 'We are not against insured or other fire victims that weren't even insured by somebody,' said Mark Grotefeld, attorney for insurance companies. 'We simply wanna be able to pursue the recovery against those that started this fire. And we're entitled do that under the law.' 'There's no rights that are being taken away from anyone,' said Cynthia Wong, attorney for victims. 'The Hawaii Supreme Court knows that and they're gonna come up with the process that allows the victims to move forward with this settlement.' After close to two hours of arguments, attorneys for the victims and insurance companies felt confident about their chances and focused on the big-picture ramifications of this ruling. When can wildfire victims get money to start rebuilding? And what happens to Hawaii's home insurance market if the companies can't recoup their losses? 'You remove that safety net for insureds, that becomes a very difficult situation for the citizens of Hawaii,' said Grotefeld. 'And we are working very hard to prevent that from happening. We want that safety net to be maintained and that's really why we're here before this court.''We're dedicated to making sure we get money in the hands of the people of Maui as quickly as we can,' said Creed. Chief Justice Recktenwald acknowledged that the court understands the urgency needed for a decision in this case. Officially, they can take as long as they want. Attorneys hope a ruling is made within a couple of months. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
