The State of Michigan's Insurance Consumer Advocate

On December 3 Robert Hartwig, president of the Insurance Information Institute, testifying before the Michigan House Insurance Committee said that Michigan drivers will continue to pay more than most Americans for auto insurance until public policymakers address the underlying costs behind this trend. “So what is driving Michigan’s auto insurance costs up in both absolute and relative terms? While the cost drivers influencing the price of auto insurance in Michigan are similar to those in other states in most respects, there is one glaring exception—its unlimited threshold for no-fault auto insurance claims,” Hartwig testified. “No other state in the country provides unlimited no-fault benefits, and for good reason—with unlimited benefits come unlimited costs.” Hartwig noted that the average no-fault auto insurance claim in Michigan rose an astounding 250 percent, to $31,883 in 2007 from $9,103 in 1998, because the “system operates with virtually no checks or balances.” Unlike almost any other state, Michigan has no medical fee schedules, no utilization controls or treatment protocols, and no state insurance fraud bureau to investigate and prosecute fraud and abuse in the no-fault system.

Robert P. Hartwig, Ph.D., CPCU, President & Economist, testified before Michigan House Insurance Committee on December 3, 2009.

The hearing focused on "Recommendations of The State of Michigan’s Insurance Consumer Advocate". You can download the testimony below:

Public Hearing on Michigan’s Testimony (PDF File)

Public Hearing on Michigan’s Testimony Charts (PPT File)

Public Hearing on Michigan’s Testimony Charts (PDF File)