A joint effort between the Indiana Economic Development Corporation (IEDC) and the Insurance Institute of Indiana has resulted in regulatory relief for commercial insurers in Indiana.
Insurance companies providing commercial property and casualty coverage will be free from the burdensome rate approval process that regularly slows down the time in which insurers can get new rates into the market, according to a news release issued by the Indiana Insurance Institute.
The rate modernization proposal passed the Indiana General Assembly in House Enrolled Act 1392. Under the new law, insurers will have to file rate changes within 30 days of beginning to utilize the rates, but the filings are for information purposes only.
According to Mike Chrysler, director of Insurance Initiatives with the IEDC, the rate modernization proposal is a good first step toward addressing speed to market issues in Indiana. He said it should demonstrate the administration’s commitment to the insurance industry.
“Governor Daniels is committed to making Indiana the top state for insurance companies to do business and to locate their operations,” Chrysler said. “Insurance executives should plan to see the administration taking additional steps to demonstrate why Indiana would be an ideal state in which to base operations.”
Institute President Stephen A. Williams credited state House Insurance Committee Chair Mike Ripley (R-Monroe) with the final passage of the bill. Ripley put together the final proposal that became law.
“In the end, it took the effort of Representative Mike Ripley to pull all the pieces together,” Williams said. “Mike understands the value of the insurance industry and the role the government should play in promoting the industry.”
Another measure included in House Enrolled Act 1392 provides for the oversight of insurance pooling opportunities for school corporations.
Williams said that while the Institute was disappointed the administration sought authority for school corporations to circumvent the traditional insurance market, he was pleased the Governor personally made sure the Institute recommended oversights were included.
“We certainly believe allowing schools to pool for their insurance is a dangerous proposition, and would not recommend any school corporations take that route,” Williams said. “However, Governor Daniels and Commissioner Atterholt made a good faith effort to include some critical regulations that should provide some protection should pools begin forming.”
The new law will take effect on July 1.
The Insurance Institute of Indiana is a non-profit state trade association representing property/casualty, health and life companies doing business in Indiana.
Topics Legislation Market
Was this article valuable?
Here are more articles you may enjoy.
Allstate Reports $731M in Q1 Pretax Catastrophe Losses 
Chubb to Acquire MGA Healthy Paws From Aon 
Uncertainty Keeps Prices Up; No Prior-Year Loss Development: Travelers 
North Carolina Adjuster and Son Charged With Embezzlement in Roof Jobs 
