DTRIC Insurance Co. will wind down operations and enter runoff in Hawaii, prompting concerns for policyholders as the state directs property owners who cannot secure coverage to the Hawaii Property Insurance Association.
The Hawaii Insurance Division confirmed that DTRIC will exit the market and stop issuing and renewing policies, though it will continue administering active policies and claims for several years during the runoff process.
DTRIC, a subsidiary of MS&AD Insurance Group Holdings Inc., said the decision aligns with a parent company strategy announced in March 2025 following the merger of Mitsui Sumitomo Insurance Co. Ltd. and Aioi Nissay Dowa Insurance Co. Ltd., DTRIC’s direct parent.
MS&AD stated that Hawaii’s relatively small market size, exposure to natural catastrophes and rising costs made long-term profitability difficult, leading to the runoff decision. The company said its transition means it will no longer write new business but will continue to operate in Hawaii to meet contractual and statutory obligations while it services existing policies.
The insurer reported a $12 million net loss in 2024 and a combined ratio of 164.5 during its shift away from commercial lines, according to Best’s Credit Report. Net premiums declined during this period as DTRIC scaled back its commercial portfolio to focus on personal auto coverage.
In June, AM Best revised DTRIC’s rating outlook to stable from negative and affirmed its Financial Strength Rating of A- (Excellent) and Long-Term Issuer Credit Rating of “a-.” AM Best cited a planned capital injection from Aioi Nissay Dowa Insurance Co. Ltd. and anticipated reductions in catastrophe exposure and reinsurance dependence as reasons for the outlook change.
Hawaii chief deputy insurance commissioner Jerry Bump said the market would feel the impact of DTRIC’s exit because it removes competition and insurance capacity in the state. The Hawaii Insurance Division advised policyholders to work with licensed agents to secure replacement coverage and said resources for motor vehicle and homeowners’ insurance are available online. Insurance Commissioner Scott Saiki said policyholders have time to transition to other carriers and should review policy terms and payment plans before switching.
Homeowners who are unable to obtain private insurance may qualify for coverage through the Hawaii Property Insurance Association. In July, Gov. Josh Green signed Senate Bill 1044, reactivating the Hawaii Hurricane Relief Fund and granting temporary authority to the association to write policies for properties that cannot secure private coverage.
MS&AD U.S. Insurance Group was the 10th-largest private passenger auto insurer in Hawaii in 2024 with a 2.16% market share, according to BestLink.
What impact do you think DTRIC’s runoff will have on competition and coverage availability in Hawaii? Share your thoughts in the comments.
