HI SR79

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

Parametric insurance settles claims based on disaster characteristics (such as maximum wind speed) rather than actual losses, enabling rapid payouts without lengthy loss adjustment processes.

Assessment must include consultation with the Ala Wai Watershed Partnership and Hawaii Emergency Management Agency, and research into insurance companies with parametric expertise and government experience.

Risk Management Office must evaluate establishing a parametric disaster insurance special fund to receive interest from the hurricane reserve trust fund, insurance payouts, and legislative appropriations.

Report with findings, recommendations, and any proposed legislation must be submitted to the Legislature no later than 20 days before the 2018 Regular Session convenes.