This bulletin supersedes Bulletin 2024-09-INS and confirms that the prohibition on price optimization in ratemaking has been codified into Michigan law via MCL 500.2027a, effective September 21, 2026. The statute prohibits property and casualty insurers from utilizing price optimization, defined as charging consumers based on an insured price tolerance that results in rate or premium adjustments not actuarially justified and based on factors unrelated to risk of loss or expense. The Director will continue to closely review all P&C rate filings to ensure compliance. This elevates the prior bulletin guidance to a statutory mandate, meaning non-compliance now carries the force of law rather than just regulatory guidance. P&C insurers must audit their pricing models immediately.
Source: https://www.michigan.gov/difs/-/media/Project/Websites/difs/Bulletins/2026/Bulletin_2026-23-INS.pdf