Laulima Exchange’s proposed rate increase for its Hawaii Residential Hurricane program has been returned by state regulators, halting a filing that sought a 12.5 percent statewide rate impact affecting more than 45,000 policyholders.

The filing, submitted on December 24, 2025, requested approval for new business effective April 1, 2026, and renewal business effective May 1, 2026. Laulima indicated an overall indicated rate need of 23% but proposed implementing a smaller 12.5% increase, which would have translated into approximately $9.1 million in additional written premium on a $72.8 million book of business.

Regulators flagged Laulima’s use of a hurricane catastrophe model version that is not currently approved in Hawaii. In addition, storm surge modeling is not permitted unless the product covers flood risk, prompting the Division to instruct the company to either confirm flood coverage or remove storm surge assumptions entirely.