By Mia MacGregor

Feb 11 - (The Insurer) - The Hawaii Supreme Court ruled Monday in favour of the state, barring insurers from pursuing independent claims over the 2023 Maui wildfires and clearing the way for a $4bn settlement directed solely to survivors.

Insurance companies had contested the settlement, asserting their right to subrogation – seeking reimbursement from defendants, including the state of Hawaii, for payouts made to fire victims.

However, the court unanimously ruled that under HRS 663-10, insurers are limited to requesting the money paid out to be reimbursed by the insured.

Governor Josh Green's office confirmed that the settlement will directly benefit those affected by the wildfires.

"We reached this historic settlement for the wildfire survivors on Maui through a collaborative effort to do what is right (pono), for our people, consistent with our values," Green stated.

“Going forward I will continue to work with all parties, including those who opposed the settlement, to expedite our critical recovery as a people and a state,” Green added.

The case was remanded to the Circuit Court of the Second Circuit for further proceedings.

The devastating wildfires, which began on 8 August 2023, claimed 102 lives, destroyed Lahaina's historic downtown, burned thousands of homes, and displaced approximately 12,000 residents.

The insured losses from the Hawaii wildfires were estimated at $3bn by Aon in October 2023.

Weeks after the wildfires broke out, Moody’s RMS had in August 2023 estimated $4bn to $6bn in economic losses with 75 percent or higher insured, while Karen Clark & Company estimated insured property losses at $3.2bn.