HEMIC to distribute $5 million to policyholders

The board of directors of HEMIC, the Hawaii Employers' Mutual Insurance Co., has declared its first dividend. $5 million will be distributed to eligible HEMIC members who were HEMIC policyholders as of 12:01 a.m., March 31.
 
"This is a watershed event," HEMIC President Bob Dove told Pacific Business News. "Until now, our focus had to be on building surplus to provide financial security for our policyholders and injured workers. Now that the appropriate surplus is achieved, our focus has shifted to returning any profits not needed to bolster surplus."

HEMIC is a private mutual insurance company, owned and governed by its policyholders, that was appointed by the Legislature to provide workers compensation coverage as an insurer of last resort for virtually all Hawaii employers who request a policy. Members range from some of Hawaii's best and safest risks to employers who have had significant safety issues.

Dove said the company's responsibility to injured workers makes it prudent to make sure it raises enough money for benefits, earn a profit and return the profit to members, rather than charging lower rates and risk running short.