Editorials
Tuesday, August 19, 1997YOU could count on a former trial lawyer like Ben Cayetano jumping on a report that auto insurance company operations in Hawaii were more profitable last year than in any other state. That feeds into the governor's attempts to abolish the no-fault system and let people sue the insurance companies to their -- and their lawyers' -- hearts' content. Auto insurance profits
report is misleadingCayetano commented that he would meet with insurance industry representatives "to let them know what I and the consumers expect them to do in light of these enormous profits."
The governor ignored the fact that those profits last year -- a hefty 20 percent -- were an exception. In 1990 the companies showed an 18 percent loss; in 1991 a 2 percent loss. Over the last decade, the average return was 8.7 percent -- below the national property and casualty insurance average of 10 percent.
Even Brian Sullivan, the insurance industry analyst who produced the profits report, said Hawaii has provided only average profits for insurers over the last decade. "It doesn't take a math genius to see that Hawaii was one of the least profitable states a few years ago," he observed.
The trial lawyers like to paint the auto insurance companies as the villains in finding an explanation for high rates. But high profits are not the reason why auto insurance is so expensive here, and abolishing no-fault would do nothing to make it cheaper. The recent high profits give the companies room to lower rates, which they were doing even without the state's prodding. But if the companies can't make a reasonable profit, they'll stop selling insurance, which would be a lot worse.
So would abolishing no-fault as the trial lawyers want and letting them sue at will.
HAWAII is one of two states without a war veterans hospital. Despite persistent lobbying in Washington, it apparently will stay that way. But that doesn't mean medical care for Hawaii's veterans is being neglected. Veterans' health care
The first phase of the Spark M. Matsunaga Veterans Affairs Medical Center will be dedicated on Thursday on the grounds of Tripler Army Medical Center. It will be the $13 million Center for Aging, with facilities to accommodate 60 veterans requiring hospitalized rehabilitative and skilled nursing-home care.
Although the plans have been cut back somewhat, the new facilities should result in much-improved care for Hawaii veterans.
POVERTY, unemployment, single-parent households and racial discrimination commonly receive the blame for crime and delinquency, but a new study concludes that a lack of neighborhood cohesion plays a larger role. The findings indicate there may be a way out of the cycle of lawlessness that has riddled many poor urban areas. Community cohesion
The study should encourage community leaders to devise ways of bringing neighbors together to combat crime at the lowest levels.
VIRGINIA Military Institute has become the final public military academy to admit women, sounding taps to its 158-year-old all-males policy. VMI's surrender after a six-year battle to keep women out of the academy follows the admission of women at The Citadel in Charleston, S.C. Unlike The Citadel, VMI seems well-prepared for the female cadets. Coed military schools
Rupert E. Phillips, CEO
John M. Flanagan, Editor & Publisher
David Shapiro, Managing Editor
Diane Yukihiro Chang, Senior Editor & Editorial Page Editor
Frank Bridgewater & Michael Rovner, Assistant Managing Editors
A.A. Smyser, Contributing Editor
