HI HB2576

Establishes a three-year parametric disaster insurance pilot program within the Department of Accounting and General Services, administered by the risk management office in collaboration with the University of Hawaii at Manoa.

Creates the parametric disaster insurance special fund to receive interest earned from the hurricane reserve trust fund, payouts from parametric insurance policies, and legislative appropriations to purchase parametric disaster insurance coverage for the State.

Parametric insurance settles claims based on disaster characteristics (such as hurricane wind speed) rather than actual losses, allowing rapid payouts within 10-21 days without lengthy loss adjustment processes.

Redirects all interest earned from the hurricane reserve trust fund principal into the new parametric disaster insurance special fund instead of the general fund.

Requires the Department of Accounting and General Services to submit a report to the legislature by December 1, 2019, describing the pilot program's actions, effects, findings, and recommendations; the program sunsets June 30, 2019.