Taking a u-turn from its earlier decision, the insurance company, Aetna Inc has withdrawn a rate hike.

This is in the list of other insurers who took back their hike. In case of Aetna, the reason was that their were errors in the calculations that it had used to justify the rate hike in case of 65,000 policyholders by an average 19 per cent.

Review which was done by a California regulator, showed that their mistakes in case of multiplications that showed the monthly premiums as the annual ones. This then did not require the compounded rate hike as requested by Aetna.

The errors, though just simple mathematical mistakes, had changed the credit positions of many of the policyholders.

This forced the insurer to take back the hike, even before the review was complete. The information was given by the Department of Insurance spokesperson, Darrel Ng.

Insurance Commission headed by Steve Poizner is already doing reviews so that the insurance companies are not able to hike rates for their own benefit. At present there are four major insurance companies that own 90 per cent of the market.