Workers' comp insurance rate stability expected

By Glenn Scott
Advertiser Staff Writer

The state has authorized four more insurance companies to write workers' compensation insurance, a move viewed by Insurance Commissioner Wayne Metcalf as evidence that Hawai'i's businesses can expect a continuation of stable, competitive rates.

Metcalf said his insurance division has approved the entry, starting May 1, of AIG Hawaii Insurance Co. and its subsidiary American Pacific Insurance Co.; General Casualty Co. of Wisconsin; and Regent Insurance Co.

Other insurers, he said, have filed with the state to enter the market.

Authorizations give insurers the choice to compete locally in the workers' compensation market. The companies may opt not to do so, of course, after further examining market conditions. Still, Metcalf said the insurers' initial interest speaks to stability.

"Relatively speaking," he said, "claims have been low, thereby keeping premiums stable, while at the same time enabling insurers to earn a reasonable rate of return."

News of the additions comes after three other insurers — Eagle Insurance Group, the Fremont group of insurance companies and HIH America Insurance Co. of Hawaii — pulled out of the market earlier this year. Combined, those three held about 10 percent of the market here.

Metcalf said their exit was not related to business in Hawai'i but to losses incurred writing workers' comp policies in other states.

The addition of four more insurers brings the number of authorized companies to 150. Most aren't actively in the market.

Twenty of those companies handle 80 percent of the business, according to state filings.