Hawaiian Insurance & Guaranty's hurricane insurance premiums are going up by an average of 30 percent as its new owner brings the company's rates in line with what other companies are charging in the market.

Great Northwest Insurance Co., which bought Hawaiian Insurance (HIG) last month, received approval for the increase because HIG had charged rates that were below those of most companies in Hawai'i, state insurance commissioner J.P. Schmidt said yesterday. The increase will be applied to premiums as they come up for renewal.

"We had information and other indications that they were below market considerably," Schmidt said.

There was speculation that Great Northwest, which bought HIG last month, would raise rates because other insurance companies were increasing premiums for hurricane coverage. This year, State Farm Insurance Co. raised homeowner's and hurricane rates by 18.1 percent, while Zephyr Insurance Co. sought a 10 percent increase in its hurricane premiums. HIG hadn't increased its rates in at least six years.

"HIG was very inexpensive, so it can't be helped," said George Yoshida, president of Rainbow Insurance Agency in Waipahu. Yoshida, who has been selling hurricane coverage from new market entrant Dongbu Insurance Co., said he has to tell customers such insurance has been getting expensive.

While hurricane insurance rates are going up, HIG's homeowner's insurance rates will remain the same for now. The increase in hurricane rates was granted on a temporary basis until the insurer provides supporting data.

No comment was immediately available from St. Paul, Minnesota-based Great Northwest. HIG had been under state control prior to its recent sale because of the financial problems of its former owner, Alabama-based Vesta Insurance Group.

Reach Greg Wiles at gwiles@honoluluadvertiser.com.