Hawaii lawmakers have opened the legislative session with a commitment to address the state's unstable property insurance market, exacerbated by hurricanes, wildfires, and climate change-related disasters. Rising reinsurance costs due to global catastrophes, including Florida and North Carolina hurricanes and California wildfires, are driving insurers to hike rates or withdraw from Hawaii. Senate President Ron Kouchi highlighted that Hawaii's designation as a disaster-prone state worsened after the August 2023 Maui wildfires. Adding to the crisis, recent Los Angeles wildfires have caused damages estimated between $135 billion and $150 billion, according to AccuWeather, intensifying the strain on the insurance sector. State Sen. Jarrett Keohokalole, chair of the Senate Commerce and Consumer Protection Committee, described the situation as incredibly complicated, emphasising uncertainty surrounding the market's response to ongoing disasters. Senate Democrats plan to revive programs initiated after Hurricane Iniki in 1992, which created the Hawaii Hurricane Relief Fund, offering hurricane coverage to over 155,000 residents until private insurers re-entered the market. However, Keohokalole warned that replicating such a program might not stabilise premiums to levels affordable for Hawaii’s residents. With the state facing risks of tsunamis, wildfires, and hurricanes, he stressed the need for accessible local insurance options, particularly for seniors and struggling families. Hawaii’s condominium sector is heavily impacted, with many condo boards reducing coverage due to skyrocketing premiums. Mortgage lenders like Fannie Mae and Freddie Mac require full replacement value insurance, leaving an estimated 375 to 390 condominium buildings underinsured for hurricane risks. Lawmakers aim to implement solutions by May to prevent further impediments to homeownership, with Kouchi warning that without insurance, residents may face the daunting prospect of paying cash for homes in a market where single-family homes average over $1 million. California’s insurance market also faces similar pressure, with major insurers retreating from property coverage amid escalating wildfire and flood risks linked to climate change. (ET)