DTRIC Insurance to begin exit from Hawaii market

Local carrier DTRIC Insurance Co. will begin exiting Hawaii’s insurance market, its parent company MS &AD Insurance Group announced this week.

The company will transition into a run-off insurer, which means it will stop issuing new policies and won’t renew existing ones, but will continue managing active policies and handling claims over the next several years.

According to the Hawaii Insurance Division, DTRIC will begin phasing out its lines of business at the end of this year, with operations expected to continue into 2027 as remaining policies and claims are resolved.

“This move reflects the same pressures that are affecting insurers across the country—rising reinsurance costs and Hawaii’s increasing exposure to catastrophic risk. Insurers are also pulling back in different areas, not just in Hawaii but elsewhere, as they look to regroup, ” Chief Deputy Insurance Commissioner Jerry Bump said. “It’s been a very challenging time for property insurers.”

Established in Hawaii in 1992, DTRIC Insurance offers personal lines such as auto, homeowners, renters and umbrella policies. It was the fifth-largest domestic property and casualty insurer in the state in 2023, with $159 million in assets, according to Pacific Business News’ 2024-25 Book of Lists.

Bump said DTRIC, while a respected local company, represents a relatively small portion of Hawaii’s insurance market with about 20, 000 policyholders, including 16, 000 auto insurance customers—estimated at less than 2 % of the state’s auto insurance market. The company also writes homeowners, workers’ compensation and commercial policies.

“Our auto market is fairly robust, ” Bump said. “We have a number of different carriers that those policyholders should be able to locate coverage when they get non-renewed. They also have coverage in homeowners, workers’ compensation and some commercial policies. Hopefully those affected individuals will be able to find coverage with another one of our carriers.”

Under state law, DTRIC must provide policyholders with proper notice before non-renewing coverage. Policyholders are advised to contact their insurance agents to secure replacement policies.

“Agents are best positioned to help their clients transition to other insurers they represent, ” Bump said.

If homeowners or drivers have trouble finding comparable coverage, there are backup options—such as the Hawaii Property Insurance Association, a state-mandated organization that provides homeowners and dwelling fire insurance to residents who are unable to obtain coverage through the private market—for homeowners who can’t find private coverage.

HPIA serves as a safety net for properties in high-risk areas, such as those prone to wildfires, hurricanes or volcanic activity, ensuring that homeowners still have access to basic property protection.

Consumers also can access premium comparison guides and licensed insurer listings at. The Insurance Division can assist residents by phone at 808-586-2790 or by email at insurance @dcca.

hawaii.gov.

Bump noted that DTRIC’s withdrawal is not unique to Hawaii. Many insurers nationwide are reassessing their exposure as reinsurance—essentially insurance for insurers—becomes more expensive due to global natural disasters and inflation.

“When those costs go up, insurers have to pass them on to the actual Hawaii policyholder, ” Bump said. “Obviously, there’s the catastrophic risk of hurricane, flood and earthquakes and tsunamis that we’re subject to in Hawaii. But, primarily, hurricane insurance is the one that can really drive up the cost. Inflation and construction costs—we’ve gone through a period of inflation that has a significant impact. If someone’s roof gets damaged, what used to cost $20, 000 now costs $30, 000 or $40, 000. Those increasing costs have to be recouped by increasing their premiums.

“These costs are not unique to Hawaii. These are occurring throughout the United States and throughout the world, especially on catastrophic losses.”

While DTRIC’s departure is not expected to destabilize the market, Bump said the Insurance Division is monitoring the situation and maintaining competition.

“Any time you remove an insurer, it can adversely affect Hawaii’s overall market capacity, ” he said. “We always have conversations with our insurers. We also have conversations with insurers who are not writing in Hawaii and working to determine if there’s things that we can do to attract them to come and write insurance in Hawaii to provide more competition and more capacity to the market.”

The division’s financial examiners continue to review Hawaii-domiciled insurers to ensure they remain solvent and capable of paying claims.

“Our role is to make sure insurers can live up to their promises, ” Bump said. “If at any point in time, we make a determination that a company is not in a good financial condition, then the commissioner has the power to take over that company, put them into supervision or rehabilitation, or, at worst, put them into liquidation. That has happened in the past, but we continue to monitor that just to make sure that those companies can live up to their promises.”

For now, policyholders are encouraged to review their coverage and begin exploring new options well before renewal deadlines. Bump said that policyholders have sufficient time to switch insurers, emphasizing the need to stay informed, consult a licensed agent and avoid any gaps in coverage.

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