This story was originally published by Honolulu Civil Beat and is republished with permission.
More than 140 insurance industry plaintiffs are pursuing legal action against utilities and landowners in relation to the Maui wildfires. This could lead to a battle over resources available to compensate victims of the disaster that took the lives of 100 people and caused significant damage to Lahaina in August.
The global insurance industry has brought its case to Honolulu state court in an effort to collect reimbursements for claims paid to policyholders. According to the latest data from the Insurance Division of the Hawaiʻi Department of Commerce and Consumer Affairs, over $1 billion in claims for residential property in West Maui has been paid out.
The list of plaintiffs includes a number of well-known insurers, along with additional companies such as Swiss Re, Mitsui Sumimoto Insurance, and Lloyd’s. The defendants include Hawaiian Electric, Hawaiian Telcom, Kamehameha Schools, and other unnamed parties.
With thousands of claims in play, the involvement of the insurance industry is a sign that the global insurance market is functioning to spread the risk of a major catastrophe in Hawaiʻi.
The outcome of the lawsuits could have significant implications for the plaintiffs seeking damages from Hawaiian Electric and others. There may be a struggle between individual claimants and insurers if negligence on part of the utilities or landowners is proven.
Hawaiian Electric and other parties have declined to comment on the situation. The company’s resources to reimburse insurers are limited due to financial strain caused by the fire. Nevertheless, the recovery fund for Maui residents affected by the fire is expected to be operational soon and could provide significant relief for individuals impacted by the disaster.
