State lawmakers in Alaska are proposing the creation of a risk pool program for commercial fishermen as the sector continues to face property and casualty challenges among its host of dilemmas.
Republican state Senator Gary Stevens, who represents state district C, said during a Dec. 18 meeting of the Kodiak Fisheries Workgroup that the risk pool could be modelled after similar programs for Alaska cities and boroughs, which he claims have saved municipalities “a lot of money” by unlocking lower insurance rates.
“I’ve heard some fishermen say ‘I just can’t afford insurance,’ and that’s a dangerous situation for everybody,” Stevens remarked.
The Kodiak Fisheries Workgroup is expected to meet twice this month before preparing final recommendations for state lawmakers to consider for the 2025 legislative session.
During an Oct. 16 meeting of the Alaska legislature’s Joint Seafood Taskforce, however, Insurance Commissioner Lori Wing-Heier said that while creating a commercial fishermen risk pool is possible, there is concern over the ability of the industry to fund it.
“I doubt, due to the economic conditions of the fishing industry right now, that the members themselves have the capital to contribute,” Wing-Heier noted.
Wing-Heier added that most of the coverage is written by surplus lines carriers and is outside of her regulatory authority. There is also an issue of which vessels should be covered by the pool, particularly with the current stigma surrounding wooden vessels.
In connection with this, the Joint Seafood Taskforce and Sen. Stevens created a poll to better understand commercial vessel operations, including where and what they are fishing for, what kind of vessels they operate, as well as the value of the boats.
Wing-Heier also said that there could be a reinsurance program or association that could provide an initial layer of coverage.
The Alaska Department of Insurance did not immediately respond to requests for comment, Best said.
