The Property Casualty Insurers Association of America applauded Michigan Governor Rick Snyder’s call for reforms to the state’s no-fault automobile insurance and to turn the Office of Financial and Insurance Regulation into a department-level agency within state government. “His call for reform to the state's no-fault automobile insurance system is an important next step toward addressing skyrocketing costs,” Jeffrey Junkas, regional manager for the Property Casualty Insurers Association of America. “We look forward to working with his office and members of the legislature to enacting meaningful reform to the system and implementing measures to bring costs down.
According to PCI, Michigan is the only state that mandates unlimited, lifetime medical benefits for auto accident injuries. “This 'one size fits all' system is expensive, has few cost controls and does not provide any incentives for thrift,” Junkas said. “As a result Michigan drivers pay 20-30 percent more than in neighboring states.
PCI also applauded Snyder’s call to elevate the Office of Financial and Insurance Regulation (OFIR) into a department-level agency within state government. Snyder signed an executive order establishing the Department of Insurance and Financial Services (DIFS) to provide a focal point of consumer protection, enable efficient and effective regulation, and position the insurance and financial services sector for economic growth. DIFS will provide a greater focus on the functions currently performed by the OFIR, housed in the Department of Licensing and Regulatory Affairs, ensuring that consumers are protected, while fostering a business climate that promotes economic growth.
“This is further evidence of his commitment to creating a positive insurance environment which protects consumers and promotes economic development and job growth,” Junkas said.
You can watch Governor Snyder's full State of the State address here (41:13-42:53 pertains to the matters covered above).
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