Isle auto insurance rates
compare favorably
with mainland

There also has been a turnaround
in the market for firms
that offer workers' comp

---

By Lyn Danninger
ldanninger@starbulletin.com

Hawaii's auto insurance rates, historically among the highest in the nation, now compare favorably with mainland averages, state Insurance Commissioner Wayne Metcalf said yesterday.

Metcalf said new requests by auto insurers for rate increases have generally been small and in line with changes in the cost of medical care and the cost involved with auto accidents.

"This is very good news given the fact that the costs associated with many products are often higher in Hawaii," he said.

Prior to auto insurance reform in 1997, auto insurance rates in the islands were higher than most places on the mainland, Metcalf said.

The state's insurance actuary, Marty Simons, noted that recent problems experienced by mainland insurers should not affect rates in Hawaii.

"Rates are based on Hawaii's experience. Yes, there are problems on the mainland in the insurance industry, and that's because they may not have been adequately projecting their costs," Simons said. "I think we've been more accurate in projecting costs here."

Metcalf said Hawaii's workers' compensation and auto insurance markets show healthy growth.

"Insurers continue to write business in a competitive environment, and while we are no longer witnessing the double-digit (rate) decreases of just a few years ago, insurers in Hawaii are profitable, and there is a market for employers in Hawaii," Metcalf said.

Metcalf noted that two recent departures from the workers' compensation market -- HIH America Insurance Co. of Hawaii and Reliance Insurance -- had financial problems related strictly to the performance of their mainland parent companies.

Metcalf also noted that more insurers had filed to enter the Hawaii market rather than exit it.

New companies now accepting workers' compensation business in Hawaii include General Casualty Co. of Wisconsin, Regent Insurance Co., AIG Hawaii Insurance Co., American Pacific Insurance Co., Kemper Employers Insurance Co., Kemper Casualty Insurance Co. and National Interstate Insurance Co. of Hawaii.