(Anchorage, AK) – This week, Alaska Governor Mike Dunleavy signed into law legislation to prudently align the State Insurance Catastrophe Reserve Account with the state’s need by cutting excess insurance. House Bill 102 (HB 102), introduced by Governor Dunleavy and approved by the Legislature, will save the state $3 million in FY23 and up to $6 million annually within four years.
“A goal of my administration has been to find government efficiencies while providing Alaskans with a continuity of service. This bill is a simple fix that will save our state millions of dollars annually,” said Governor Dunleavy. “I thank the Legislature for taking action on my legislation to reign in excess spending toward the State Insurance Catastrophe Reserve Account.”
The State Insurance Catastrophe Reserve Account (Reserve) was established in 1987 to obtain insurance, establish a self-insurance reserve, and to satisfy ongoing claims and judgements. When it was originally established, the account was primarily intended as a reserve against large catastrophic losses. However, because the reserve balance is capped at $5 million, the State has been acquiring excess coverage on the market to adequately protect against catastrophic losses. HB 102 increases the statutory cap to $50 million, slowly increases the Reserve balance, and allows Alaska to once again be fully self-insured against property losses.