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Troutman publishes a note on Michigan insurance price-optimization legislation
Troutman Pepper Locke said it published an InsureReinsure note by Matt Cossu and Alan Levin on Michigan Senate Bill 1013, signed September 21 and effective immediately, which adds Section 2027a to the Michigan Insurance Code to prohibit price optimization in property and casualty ratemaking. The firm said the statute bars pricing on policy-turnover likelihood, willingness to pay or price elasticity, and goes further than Texas Bulletin B-0007-26 by enacting a standalone prohibition.
Key points
- Troutman’s article identified Michigan Senate Bill 1013.Troutman Pepper Locke
- The note examined the distinction between actuarial risk and a customer’s willingness to pay.Troutman Pepper Locke
- The firm’s article discussed policy shopping, cancellation and renewal behavior.Troutman Pepper Locke
- Troutman’s note also addressed measures of consumer price elasticity.Troutman Pepper Locke