New York: Premiums climb statewide
In New York, insurance costs have steadily risen over the past several years. State Senator Brian Kavanagh introduced legislation allowing lawsuits against large fossil fuel companies, aiming to reduce premium increases and protect residents from extreme weather losses.
Hawaii: Insurance crisis after Maui fires
Hawaii faces similar challenges. The 2023 Maui wildfires alone generated more than $2 billion in insurance claims, leading to sharp premium increases. State Senator Jarrett Keohokalole said, “Residents shouldn’t be forced to cover damages caused by climate change that fossil fuel companies contributed to.”
Hawaii’s bill would also allow insurers to recover costs from major polluters after climate-related disasters.
How the proposals would work?
The laws focus on large fossil fuel companies worth at least $500 million operating within each state. Any money recovered could be used to:
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Offset rising insurance premiums
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Support state insurance programs like California’s FAIR Plan
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Strengthen disaster resilience for homes
Industry pushback
Oil industry groups, including the American Petroleum Institute and Western States Petroleum Association, oppose the bills. They argue that lawsuits could harm the economy, raise costs for consumers, and set a precedent of retroactive liability.
