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Senate orders detailed report on private property insurance after testimony on steep premium increases
Summary
SCR 155 and SR 125 requesting a detailed report from the insurance commissioner passed unamended; testimony from a policyholder described a 300% increase in master policy premiums and questioned the data insurers used to justify rate increases.
Senate committees on April 1 passed SCR 155 and SR 125 requesting the insurance commissioner produce a detailed report on the state of Hawaii's private property insurance industry after multiple written testimonies and in-person remarks.
A homeowner and association treasurer, Jeff Sodino, testified that his master policy premium has risen about 300% since 2022 and that his most recent renewal included a $70,000 increase—roughly $60,000 of which he was told reflected higher building replacement costs. Sodino said the insurance Division's explanation (cited by an official, Sue Savio) pointed to a 43% increase in replacement-cost inputs, which he said did not track with CoreLogic data or national/local construction-cost indices (he cited national construction-cost increases near 5% and Hawaii increases near 11% over the past year).
Why it matters: Private-property insurance volatility and steep premium increases are a widespread concern in Hawaii; a legislatively requested, detailed report could clarify rate drivers, insurer methodologies for replacement-cost estimates and the Insurance Division's oversight practices.
Testimony and committee response: Sodino said no site inspection preceded his policy increase and criticized the lack of transparent data that homeowners could review to contest large increases. The Insurance Division provided comments on the resolutions. Committee members recessed for decision making and later passed the resolutions unamended.
Action: The committee recorded the recommendation to pass SCR 155 and SR 125 without amendments, advancing the request for a comprehensive report from the insurance commissioner to inform legislators and the public.
Next steps: The insurance commissioner is asked to prepare the requested report for the legislature; committee members signaled they may seek clearer rate-justification data and stronger oversight if the report raises concerns about methodology or accuracy.
