Maryland Insurance Administration plans new IT system as complaint backlog and fraud caseloads strain staff
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Summary
MIA told the budget subcommittee it is implementing a long‑overdue insurance tracking system and taking steps to reduce a rising backlog of property-and-casualty complaints while fraud referrals and closures have fallen in recent years.
Maryland Insurance Administration (MIA) officials told the Public Safety, Transportation, and Environment Subcommittee that their fiscal 2026 operating allowance is about $57.9 million and includes 13 new regular positions, most for the Insurance Fraud Division.
MIA analyst Scott Benson told members the agency’s proposed FY 2026 operating budget "increases $1,100,000 or 1.9% to $57,900,000," driven largely by personnel costs and cost-of-living adjustments and by the final phases of an Insurance Tracking System (ITS) replacement.
Why it matters: MIA handles licensing and solvency monitoring for insurers in Maryland; a growing backlog of property-and-casualty (P&C) complaints and slower fraud-case throughput affect consumers who seek dispute resolution or fraud investigations.
ITS project: MIA said the legacy licensing system, custom-built in the 1990s, is being replaced. DLS noted the ITS project’s estimated total cost for development and implementation was $18.1 million, with $7.7 million budgeted in FY 2026. Acting Insurance Commissioner Marie Grant described the project as “a very exciting update” and said the agency has hired a new chief information officer and established an internal steering committee to manage implementation. She cautioned that ongoing licensing costs and software support choices will influence future-year budgets.
P&C complaints and fraud caseloads: DLS exhibits show P&C complaints rose since FY 2021 while the share resolved within 90 days declined; MIA said it is reorganizing workflows, reassigning staff and using contractual help to chip away at the backlog. On fraud enforcement, DLS reported fewer referrals opened and closed within 180 days and declining referral rates sent for prosecution since FY 2016.
MIA response and steps: Grant said MIA is reallocating staff, using retirees and contractual help, and changing investigator workflows so investigators focus on investigations while other staff handle intake, public-records requests and calls. She also said the ITS upgrade will enable automated acknowledgments and better case-tracking once implemented.
Legislative recommendations: DLS recommended narrative budget language to require periodic ITS status reporting; MIA agreed it would provide additional progress reports and noted some discrepancies in the budget highlight figures likely tied to previously approved budget amendments.
What the record shows and requests: The transcript records the ITS budget estimate for FY 2026, an increase in P&C complaint volumes, the lower rate of complaints resolved within 90 days, declining fraud-referral closures and MIA’s planned management actions. MIA agreed to provide regular updates to the committee and DLS.