MICH.Regulation
Michigan bans property and casualty insurers from price optimization in ratemaking
Gov. Gretchen Whitmer signed Senate Bill 1013 on September 21, 2026, now 2026 Public Act 98, effective immediately. It adds section 2027a to the Insurance Code (MCL 500.2027a), making it an unfair or deceptive practice for a property and casualty insurer to use price optimization in ratemaking: charging on an insured's price tolerance through adjustments not actuarially justified and unrelated to risk of loss or expense. The governor's office says it codifies a 2024 DIFS bulletin.
Enrolled text (Michigan Legislature) → · Michigan Executive Office of the Governor
Key points
- Property and casualty insurers may not use price optimization in ratemaking; doing so is an unfair or deceptive practice under new MCL 500.2027a.Michigan Legislature
- Price optimization means charging on an insured's price tolerance through adjustments not actuarially justified and unrelated to risk, including predicted policy turnover.Michigan Legislature
- Turnover indicators named in the act include shopping other insurers, cancelling early, not renewing, or complaining to the insurer.Michigan Legislature
- The act took immediate effect on September 21, 2026 as 2026 PA 98; the governor's release says it codifies a 2024 DIFS bulletin.Michigan LegislatureMichigan Executive Office of the Governor
Sources2 articles across 2 outlets
Michigan Executive Office of the Governor
Michigan Legislature