DTRIC Insurance is entering run-off, meaning it will stop writing new policies and not renew existing ones. However, active policies will remain in effect until their expiration dates, and valid claims will be honored during the transition period. This decision affects approximately 20,000 policyholders across the state, with about 16,000 holding auto insurance policies and 4,000 with property insurance coverage.
The Hawaii Insurance Division is advising all affected policyholders to begin searching for replacement coverage well in advance of their renewal dates. It’s important to work with licensed insurance agents, carefully review new policy terms and deductibles, and take advantage of state-provided resources during this transition.
Why DTRIC Is Leaving (No Official Comment Yet)
While DTRIC and its parent company, MS&AD, have not publicly explained their reasons for exiting the Hawaii market, industry experts point to challenging market conditions. Key factors likely include rising reinsurance costs, increased risks from natural disasters such as hurricanes and wildfires, and growing expenses related to construction materials and labor. These pressures have made it difficult for insurers—especially those with smaller portfolios—to maintain profitability, particularly in the property insurance sector.
Availability of Homeowners Coverage in Hawaii
Insurers in Hawaii are still offering new policies, but they are doing so selectively. Admitted carriers are focusing on lower-risk areas and homes that meet modern safety and mitigation standards. For higher-risk properties, surplus lines insurers may offer coverage at higher premiums and with different consumer protections. Homeowners who cannot secure private coverage have the option of HPIA (Hawaii Property Insurance Association), which serves as the state’s insurer of last resort.
Where It’s Hardest to Get Coverage
Certain areas face greater challenges in securing homeowners insurance:
- Wildland-urban interface zones with high wildfire risk, especially on Maui and the Big Island
- Coastal regions and areas with high wind exposure due to hurricane threats
- Older homes without updated roofs or wind-resistant features
- Condominium associations dealing with rising wind and hurricane-related costs
What to Expect When Shopping for a New Policy
Policyholders should prepare for a more rigorous application process. Insurers are likely to request detailed documentation about roof condition, prior claims, and any mitigation measures in place. Wind and hurricane deductibles are common and may be higher than in the past. Consumers should also expect longer processing times as market capacity fluctuates.
Pricing Outlook
Homeowners insurance premiums in Hawaii vary significantly based on location, construction type, and risk exposure. Standard risks typically pay between 2,000and5,000 annually, while high-risk properties—especially those placed through surplus lines or HPIA—can face much higher costs. Documented investments in mitigation, such as storm shutters or roof reinforcements, can help improve availability and reduce premiums.
What Policyholders Should Do Now
Start the search for new coverage early by contacting a licensed insurance agent in Hawaii. Compare options across both admitted and surplus lines markets. Use state resources, such as consumer guides and premium comparison tools, to make informed decisions. Verify that any agent or broker is licensed through the Hawaii Insurance Division.
Investing in home improvements that reduce risk—like upgrading roofs or clearing defensible space—can improve insurability. Keep records of these upgrades to share with insurers. If private coverage is unavailable, review the eligibility requirements and terms for HPIA.
The Road Ahead
DTRIC’s exit reflects broader challenges in Hawaii’s property insurance market, driven by climate risks, rising construction costs, and tight reinsurance markets. While coverage remains available, it is becoming more selective and often more expensive. Long-term stability will depend on future disaster experiences, reinsurance availability, and trends in building costs. For now, consumers should plan for a more complex, competitive, and cost-conscious insurance environment.
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