Michigan DIFS launches new auto insurance resources for consumers and agents

In a recent meeting of the Michigan State Legislature's Finance, Insurance, and Consumer Protection committee, significant updates were shared regarding consumer support and insurance regulation in the state. The Department of Insurance and Financial Services (DIFS) highlighted its ongoing efforts to assist residents with insurance-related inquiries and issues.

One of the key developments is the launch of a new dedicated web page for auto insurance. This resource aims to empower consumers by providing essential information about recent changes in auto insurance laws, including frequently asked questions, tips for shopping for insurance, and guidance on filing complaints. The website also offers a platform for reporting insurance fraud, ensuring that Michigan drivers have access to the latest information and support.

DIFS reported receiving nearly 400 inquiries from legislative offices in 2024, emphasizing the importance of detailed information when constituents reach out for assistance. Residents are encouraged to provide specific details, such as their full name, insurer information, and policy numbers, to facilitate effective support.

The meeting also addressed the role of the Office of Insurance Valuation, which monitors the financial health of insurance entities to ensure they can meet their obligations to policyholders. This office is responsible for licensing and examining insurance companies, including captive insurers, which are owned by the insured to manage their own risks. Recent legislative efforts aimed at modernizing the framework for captive insurers were also discussed, focusing on reducing application fees and streamlining processes.

Additionally, the Market Regulation section of DIFS reported opening 80 new investigations in 2024, resulting in recoveries and settlements totaling nearly $3.3 million. This underscores the department's commitment to addressing complaints against regulated entities and ensuring fair practices within the insurance market.

As the meeting concluded, it was clear that DIFS is actively working to enhance consumer protection and support in Michigan's insurance landscape. With over 500,000 licensed insurance professionals now under its oversight, the department is witnessing a notable increase in licensing activity, reflecting a growing interest in the insurance industry. These developments are poised to have a direct impact on Michigan residents, ensuring they have the resources and protections they need in their financial dealings.