Senate committees pass resolutions urging insurers to pursue subrogation against polluters, narrow language to deceptive practices

The Hawaii State Senate joint hearing on April 1 passed Senate Concurrent Resolution 198 and Senate Resolution 178 with amendments that narrow who insurers should target for subrogation claims related to climate-driven insurance-cost increases.

The committees on Commerce and Consumer Protection and Agriculture and the Environment voted to adopt amended language replacing the phrase "polluters knowingly responsible" with "polluters who knowingly engage in misleading and deceptive practices regarding the connection between their products and climate change." Committee members said the amendment narrows the resolution to entities that made deceptive claims about their products' climate impacts.

Why it matters: The resolution urges Hawaii insurers and the Hawaii Property Insurance Association to pursue subrogation claims against entities contributing to climate impacts that have worsened insurance costs. Clarifying language to focus on deceptive practices restricts recommendations to conduct that the committees said they could more readily identify and document.

Testimony and deliberations: The hearing record includes written support from 47 individuals and one organization and in-person testimony from Sophia Gravel. Josh Tamborrow, former chief resilience officer for the City and County of Honolulu, testified in support, saying the financial implications of the climate crisis for insurance costs are "massive" and praising the Senate for exploring mechanisms to offset costs on local consumers.

Committee members said they took concerns from the Hawaii Cattlemen's Council into account when drafting the narrower amendment. The committees also adopted several technical, non-substantive edits across both measures.

Votes: On the Commerce and Consumer Protection side, the chair and vice chair voted "aye." The transcript records Senator McAfee (aye), Senator Richards (aye) and Senator O'Waugh (aye) during the adoption announcement; the chair declared the measure adopted. The Agriculture and the Environment committee also passed the resolutions with amendments; the transcript records votes and some excused members during that committee's action.

What the resolutions do and do not do: Both resolutions are nonbinding urges aimed at insurers and the Hawaii Property Insurance Association; they do not create new legal authority or compel the insurance commissioner to act. The amendment limits the resolutions' focus to situations where an entity knowingly made misleading or deceptive statements about the connection between its products and climate change.

Next steps: With the resolutions adopted (passed with amendments), the committees recorded the adoption and closed the agenda item.