JUNEAU – Friday, the House passed a major win for Alaska’s struggling commercial fishing industry. House Bill 116 allows fishermen to form insurance cooperatives that are exempt from the state’s traditional insurance code. The bill, sponsored by the House Special Committee on Fisheries at the request of the Joint Legislative Task Force Evaluating Alaska’s Seafood Industry, passed unanimously.

HB 116 responds directly to a growing crisis in the commercial fishing sector: the soaring cost and declining availability of vessel insurance. Traditional insurers have increasingly raised premiums and refused coverage for older vessels, making it difficult for many small operators to stay in business. By enabling fishermen to pool resources and share risk, the bill creates a path to more affordable and accessible insurance options tailored to the realities of the fishing industry.

“I am thrilled to see this legislation move from the House floor,” said Representative Louise Stutes (R-Kodiak). “With rising premiums and fewer insurance options, many in our commercial fleet are facing impossible choices. House Bill 116 gives them the tools to build a sustainable insurance model that puts Alaska’s fishermen first.”

The legislation specifically exempts cooperative insurance agreements among commercial fishermen from Alaska’s insurance statutes, allowing these arrangements to operate outside traditional regulatory constraints. The approach mirrors successful models already in place in Washington State and among Alaska’s municipal governments.

Alaska’s seafood industry has experienced deep economic losses in recent years, including a $1.8 billion downturn between 2022 and 2023. These losses have been exacerbated by mounting insurance costs and limited access to coverage. HB 116 will provide much-needed relief, particularly for fishermen operating older but seaworthy vessels, and help stabilize an industry that remains vital to Alaska’s economy and coastal communities.

HB 116 now heads to the Senate for further consideration. Follow the bill at www.akleg.gov or contact Rep. Stutes’ office at Rep.Louise.Stutes@akleg.gov or (907) 465-2487.

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