HI HR77

Risk Management Office of the Department of Accounting and General Services is requested to assess the feasibility of a three-year parametric disaster insurance pilot program for Hawaii financed with investment income from the Hawaii hurricane relief fund.

Assessment should include establishing a parametric disaster insurance special fund that receives interest from the hurricane reserve trust fund, payouts from parametric insurance policies, and legislative appropriations.

Risk Management Office must consult with the Ala Wai Watershed Partnership on using the Ala Wai Watershed as a pilot site and with Hawaii Emergency Management Agency on disaster response implementation.

Parametric insurance would settle claims based on disaster characteristics (such as hurricane wind speed) rather than actual losses, enabling rapid payouts for emergency response costs, lost tax revenues, and increased insurance expenses without federal limitations.

Risk Management Office must submit findings, recommendations, and any proposed legislation to the Legislature no later than twenty days before the 2018 Regular Session convenes.