Under state order, Hawaii homeowners insurers may lower rates
The insurance commissioner in Hawaii has put into motion steps that could result in lower rates for Hawaii homeowners insurance.
Commissioner Gordon Ito announced he compared average Hawaii homeowners insurance rates with data from the National Association of Insurance Commissioners. His determination was that local insurers may be charging excessive rates given the current economic climate. He's ordered Hawaii insurers to re-submit rate filings by October 6 or face sanctions, an action that might result in lower rates for residents.
Ito's analysis found that Hawaii home insurers suffered losses well below the national average and significantly below the level at which companies could earn reasonable profits on their investments.
"After reviewing the most recent data, I concluded that rates should not be this high for homeowners who are struggling during these tough economic times," Ito said. "We are looking out for homeowners to ensure they are being treated fairly. By implementing rate reductions, the Insurance Division seeks to help homeowners keep more money that is theirs and in turn, this will contribute in turning Hawaii's economy around."
A recent study of property & casualty insurers by the Heartland Institute gave Hawaii an F, saying the state's insurance marketplace is free for neither consumers nor insurers.
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