ENCOURAGING HAWAII INSURERS AND THE HAWAII PROPERTY INSURANCE ASSOCIATION TO REDUCE INSURANCE COSTS ON LOCAL RESIDENTS BY PURSUING SUBROGATION CLAIMS AGAINST POLLUTERS WHO KNOWINGLY ENGAGED IN MISLEADING AND DECEPTIVE PRACTICES REGARDING THE CONNECTION BETWEEN THEIR PRODUCTS AND CLIMATE CHANGE.

2025 Regular Session

Encourages Hawaii insurers and HPIA to pursue subrogation against polluters who knowingly misrepresented climate change links to reduce residents’ insurance costs.

Received from House (Hse. Com. No. 770).

#claims #climatechange #insurance #insurancerates #polluters

Summary — SCR 198 (2025)

Title: Encouraging Hawaii insurers and the Hawaii Property Insurance Association to reduce insurance costs on local residents by pursuing subrogation claims against polluters who knowingly engaged in misleading and deceptive practices regarding the connection between their products and climate change

Purpose / Intent

SCR 198 is a concurrent resolution urging Hawaii insurers and the Hawaii Property Insurance Association (HPIA) to pursue subrogation claims against polluters—particularly fossil fuel industry actors—who the resolution says knowingly engaged in misleading or deceptive practices about their products’ link to climate change. The stated goal is to help lower insurance costs for Hawaii residents by shifting at least some financial liability for climate-related losses away from policyholders and insurers and onto alleged responsible parties.

Key provisions

Encourages (non‑binding) Hawaii insurers and the HPIA to pursue subrogation claims against polluters who knowingly engaged in misleading/deceptive practices about the connection between their products and climate change.

Recites findings/rationale: worsening climate-driven weather events, documented industry awareness of contributions to climate change, rising premiums and non‑renewals (citing the 2023 Maui wildfires), and precedents of insurer litigation against large industries (e.g., tobacco, opioids).

Requests certified copies of the resolution be transmitted to: Governor; Attorney General; Insurance Commissioner; Director of Business, Economic Development, and Tourism; Chairperson of the Public Utilities Commission; President of the National Association of Insurance Commissioners; and Plan Administrator of the Hawaii Property Insurance Association.

Note: The Senate-amended version (SD1) clarifies the target as polluters “who knowingly engaged in misleading and deceptive practices regarding the connection between their products and climate change.”

Who is affected

Insurers and the Hawaii Property Insurance Association (encouraged to act).

Polluters (potential defendants if subrogation suits are pursued).

Hawaii policyholders and residents (potential beneficiaries if recoveries reduce premiums or stabilize the market).

State regulators and officials (recipients of the resolution; potential coordinators).

Procedural / timeline information

Filed: 2025-01-13; Introduced: 2025-03-04.

Referred through committees in both chambers; amended in the Senate to SD1.

Transmitted to House 04-17-2025; adopted in final form by the House 04-21-2025 (House concurrence noted votes).

Subsequent records list the measure as indefinitely postponed/withdrawn (05-03-2025) and later "Died in Judiciary" (06-16-2025).

Classification: Concurrent resolution (expresses legislative intent; does not create binding law or appropriate funds).

Companion measure: SR 178.

Potential impacts and considerations

As a non‑binding resolution, SCR 198 signals legislative support for insurer subrogation actions but does not compel litigation or change substantive law.

If insurers pursue and prevail in subrogation suits, recoveries could reduce net losses that contribute to premium increases; however, success depends on legal doctrines (causation, standing, multi‑jurisdictional issues) and litigation outcomes.

The resolution may encourage coordination among insurers, regulators, and the Attorney General, and could increase public and political pressure on both insurers and alleged polluters.