Bill > SB2452

This bill, known as the "Climate-Friendly Insurers Act of 2026," aims to create a more stable and affordable insurance market by addressing climate-related financial risks posed by insurers' investments and underwriting practices, particularly concerning fossil fuels. It requires insurers that write over $10 million in property and casualty premiums in the state to align their investments and underwriting with "science-based climate mitigation targets," which are emissions reduction goals consistent with limiting global warming to 1.5 degrees Celsius. Specifically, these insurers will be prohibited from underwriting or investing in any "new fossil fuel project" (defined as projects beyond what is already approved or in development as of July 1, 2026, with exceptions for safety or carbon intensity improvements that don't expand supply) after that date, and must phase out all underwriting and investment in existing fossil fuel projects and companies by 2035. The Department of Commerce and Consumer Affairs, in consultation with the Department of Health, will define key terms like "financed emissions" (emissions from insurer investments in fossil fuel companies and projects) and "insured emissions" (emissions from insurer underwriting in these areas). Covered insurers must report their investments, underwriting, financed emissions, and insured emissions annually, and their chief executive or financial officers must certify compliance. Failure to comply can result in significant penalties, including fines, restrictions on dividends and executive compensation, increased fees, and potential license revocation. The bill also establishes a "Climate-Friendly Insurers Special Fund" to receive appropriations and penalties, which can be used to finance projects and initiatives aimed at avoiding, limiting, or adapting to climate change impacts, with a portion of funds appropriated for the purposes of this Act. The Commissioner will report to the legislature on the implementation of these requirements and their impact on insurance affordability and availability.

Business and Industry

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=2452&year=2026