Hawaii homeowners face sharp insurance rate increases as carriers recalibrate pricing around wildfire exposure, hurricane risk, volcanic activity, and rising reinsurance costs. Inflation adds pressure. Concentrated risk does the rest.
Insurers received approval for at least 20 homeowners rate increases last year. Most landed in double digits. Two approached 32%.
According to Beinsure analysts, Hawaii now sits among the most aggressively repriced homeowners markets in the US.
Chris Draghi, director at AM Best, said property pricing reflects inflation, risk concentration, and prevailing weather patterns.
In Hawaii, those factors intensified after the 2023 wildfires destroyed more than 2,200 structures. Draghi described such events as real-world signals that force insurers to reset or adjust how they view risk.
Premium volume moved sharply higher. Homeowners multiperil written premiums increased 13.38% to $562.2 mn in 2024, up from $495.9 mn a year earlier, according to the 2025 report from the Hawaii Insurance Division.
Loss experience moved in the opposite direction. Claims and benefits paid fell to $365.2 mn from $1.16 bn.
The state’s largest homeowners carrier, State Farm, secured approval for a 28.5% effective rate increase on November 15 for hail, wind, and hurricane coverage under its independent Hawaii Homeowners Program, written through State Farm Fire and Casualty.
The filing affects 98,970 policyholders and increases written premium by $45.5 mn. State Farm disclosed a maximum potential increase of 48.4%.
Mid-tier carriers are moving as well. RLI Insurance Company, the fifth-largest homeowners writer in Hawaii, increased homeowners premium by 33% in the third quarter.
That included a 16% rate increase, according to chief operating officer Jen Klobnak. The carrier also received approval for a separate 10.7% overall rate increase effective October 1.
RLI president and chief executive Craig Kliethermes said recent market disruption created opportunity for insurers able to manage volatility with discipline and underwriting depth.
Klobnak said the company expects additional premium growth as conditions remain unsettled, noting that the wildfire shifted competitive dynamics and opened space for selective expansion.
According to Beinsure, Hawaii’s homeowners market now reflects a broader industry pattern. Loss-driven repricing arrives first.
Policyholders absorb the adjustment while insurers test whether higher rates hold against future catastrophe seasons.
