Arizona Department boosts insurance licensing staff to address application backlog

Arizona's Department of Insurance and Financial Institutions (DiFi) is taking significant steps to address recent delays in processing insurance producer licenses. During a recent government meeting, officials acknowledged that some residents experienced longer wait times for their license applications due to staffing shortages. The department had lost half of its staff in the insurance producer licensing section, which contributed to these delays.

To combat this issue, DiFi has realigned its resources and added a new position to the licensing unit. This decision comes in response to a 50% increase in the number of insurance producer licensees over the past five fiscal years. In fiscal year 2024 alone, the department processed approximately 22,000 initial and renewal applications, marking the highest volume in its history.

Despite the staffing challenges, the average processing time for initial and renewal applications has remained stable, averaging between four to seven days. With the addition of new staff, the department aims to improve efficiency further, reducing the workload to approximately 470 applications per week per staff member.

This proactive approach is expected to enhance service delivery for Arizona residents seeking insurance producer licenses, ensuring that the department can keep pace with the growing demand for these services. As the department continues to adapt to the increasing volume of applications, stakeholders can anticipate a more streamlined licensing process in the near future.