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Hawaii Hurricane Relief Fund board selects Aon for market study but contract delays frustrate lawmakers
Summary
HHRF board told legislators it selected Aon to study market solutions for insurance availability, but contracting delays and no firm deadline for the study prompted lawmakers to urge faster, emergency-paced procurement.
The Hawaii Hurricane Relief Fund board told the Joint Committee on Commerce and Consumer Protection on Jan. 27, 2025, that it has selected Aon to perform an institutional market study and options analysis but that the contract had not been signed, drawing public frustration from lawmakers who called for emergency-speed action.
Ed Hake, chair of the HHRF board, said the fund is in a startup phase responding to difficult insurance markets and that the board’s first steps were to determine whether HHRF can make an impact and to retain a consultant to evaluate options. "Potentially, there's a need and potentially there's an impact. That was step 1," Hake said, describing the selection process and his understanding that Aon had been chosen and contracting was in progress.
Mike Nonaka, HHRF vice chair, told legislators that Aon and Guy Carpenter had responded to the board’s RFP and that Aon was selected; Willis declined to make the final presentation. Nonaka said contracting was delayed in part because Aon planned to use a company not yet vetted or licensed by the state and that the procurement was still being vetted by the Attorney General’s office.
Lawmakers pressed the board for timelines and asked whether the fund could move more quickly. Several lawmakers said constituents needed solutions now and urged the board to use emergency procurement authorities where available. One senator suggested a written follow-up and regular check-ins; HHRF board members said they expected the matter to be a primary agenda item at a Feb. 3 board meeting and offered to respond to legislative requests within two weeks.
Hake said the selected consultant would provide an overview of market status and potential paths for the fund, not a magic bullet. The board emphasized the study would assess alternatives including an HPIA-like model, using managing general agents or hiring staff, and would evaluate capitalization, reinsurance structure and other operational questions necessary to seek market participation or to deploy capital.
Why this matters: Lawmakers and industry witnesses said the emergency-pace problems in the insurance market have immediate effects on homeowners and condominium associations seeking coverage. Committee members signaled impatience with contracting delays and requested a formal update after the board’s next meeting.
