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Committee advances SB1563 to create an insurance consumer affairs office and rate-transparency rules
Summary
SB1563 would establish rate-transparency requirements and create an insurance consumer affairs office within DCCA; the committee passed the bill with amendments and asked for further discussion on details.
SB1563, a proposal to establish rate-transparency requirements for insurance companies operating in Hawaii and to create an office of insurance consumer affairs within the insurance division of the Department of Commerce and Consumer Affairs, was considered by the Senate Committee on Commerce and Consumer Protection on Feb. 10, 2025.
Jerry Pontiac, insurance commissioner, stood on the DCCA’s written comments. The measure drew support from AARP and opposition from industry groups including the Hawaii Insurance Council and NAMIC (National Association of Mutual Insurance Companies), which expressed concerns about scope and implementation. Testimony reflected differences over the appropriate level of oversight, potential administrative costs, and the office’s powers.
In decision making, the committee voted to pass SB1563 with amendments and deferred the effective date to July 1, 2050 for further discussion. Chair and vice chair votes to pass were recorded and no objections were recorded at the time the committee adopted the recommendation.
The committee asked staff and the insurance division to provide further detail on staffing, authority, and reporting requirements for the proposed insurance consumer affairs office and to provide fiscal impacts and implementation plans to clarify how the office would function alongside existing insurance regulation.
