Hawaii has launched a search for a consultant to help revive its quarter-century-dormant catastrophe pool to increase capacity targeted at the state’s condominium market.
According to a request for proposal (RFP) issued last week, the state government is planning to restart the Hawaii Hurricane Relief Fund (HHRF) and is seeking a company to help "stabilize" the insurance market. The consultant will be tasked with “assessing the reinsurance markets and providing reinsurance options available for risk transfer of HHRF losses” related to condominiums.
The HHRF was originally established in 1993 following Hurricane Iniki but was suspended in 2000 as private sector coverage became more widely available.
In addition to insurance assessment and proposal development, the selected consultant will offer brokerage administration support post-approval, including program marketing, contract preparation, reinsurer evaluations, and dispute resolution, according to the RFP.
The proposal emphasizes the importance of the consultant’s expertise in global reinsurance and capital markets, noting that they will also provide advisory support during government engagements, such as legislative hearings.
The consultant will recommend servicing carriers to assist in restarting HHRF operations, overseeing end-to-end insurance processes—from policy issuance and payment processing to claims handling and record-keeping on a comprehensive electronic system.
The HHRF stated that it requires “extensive modeling services throughout the year,” with the consultant expected to provide AIR, RMS, and EQE modeling services.
Prospective firms will be reviewed between November 15 and November 25, with finalist presentations to the HHRF board of trustees scheduled for December 3. The consultant will be selected by December 17, according to the RFP.
The HHRF held hearings earlier this year to discuss resuming fund operations after residents experienced insurance rate increases of nearly 1,000 percent following the Maui wildfires.
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