Insurance provider DTRIC will leave the insurance market in Hawai‘i and wind down its operations over the next several years.
On Friday, the Hawai‘i Department of Commerce and Consumer Affairs announced that DTRIC — a home and auto insurer founded in 1992 — would transition to a run-off insurance carrier in the state, and will no longer issue new policies or renew old ones.
A statement by DTRIC claimed that the decision came after the March merger of DTRIC's parent company, Japan's Aioi Nissay Dowa Insurance Company, with the Mitsui Sumitomo Insurance Company, which lead the merged company to focus on "more profitable markets."
"As Hawai‘i is a relatively small market with natural catastrophe exposure and continually rising costs, sustaining long-term growth and profitability has become increasingly challenging," the statement read. "With a view to achieving higher profitability, it was decided to transition DTRIC to a run-off insurance carrier."
DTRIC's statement assured that operations will be maintained for "at least the next several years" in order to continue to honor existing policies. However, the company will also make workforce reductions at the end of 2026 and the end of each subsequent year.
DTRIC did not specify the number of policyholders the company has in Hawai‘i.
DCCA advises policyholders to contact their agents and visit the DCCA website to compare other insurers.
“Consumers have ample time to find a replacement carrier," said Insurance Commissioner Scott Saiki in a statement. "We advise them to ask family, friends and coworkers for referrals, as well as ensuring they understand their new policy and payment plans before signing anything. Lastly, they should verify that they are working with an authorized and licensed insurance broker."
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