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Insurance regulator cites backlog, IT overhaul and fraud staffing in fiscal 2026 request
Summary
The Maryland Insurance Administration projects a $57.9 million fiscal 2026 allowance, plans an IT replacement with higher cost estimates, and described a backlog of roughly 3,000 property and casualty complaints; the administration seeks permanent conversions and additional fraud investigators.
The subcommittee reviewed the Maryland Insurance Administration’s fiscal 2026 budget, operations and planned information technology upgrade as acting Insurance Commissioner Marie Grant outlined work to reduce a consumer complaint backlog and to modernize an aging tracking system.
Scott Benson of the Department of Legislative Services summarized the analysis and said the fiscal 2026 operating allowance increases by $1,100,000, or 1.9%, to $57,900,000 and includes 13 new regular positions alongside a net decrease of seven contractual full‑time equivalents. Benson noted the agency’s insurance tracking system originally began planning in 2019 and that previous project cost estimates varied. “Originally the insurance tracking system project was estimated to cost between $23,000,000 for the total project development and implementation,” he said.
Marie Grant, acting insurance commissioner and nominee pending Senate confirmation, told the panel the administration now estimates the overall project cost at a little more than $22,000,000 and expects approximately $7,670,000 to be spent in fiscal 2026 from special funds. “I am extremely dedicated to getting this project on time and on budget,” Grant said, and she committed to providing regular project updates to the committees as recommended by DLS.
Committee members focused on three operational challenges: a rising caseload of property and casualty complaints, declining clearance rates for certain complaint categories, and fewer fraud referrals opened for investigation in recent years. Grant said the administration is addressing the roughly 3,000‑complaint backlog by reorganizing workflows, hiring contractual retirees and adding contractual staff in fiscal 2026. She said the MIA is also improving oversight of rates and forms filings to try to prevent complaints before they occur.
Grant said the agency is strengthening its fraud‑investigation unit and has added a new associate commissioner for fraud and enforcement. The administration is seeking staff increases in the fraud unit to investigate longer‑running, complex schemes; Grant said six new positions had been requested for that division to better detect and prevent fraud that contributes to higher insurance costs.
The acting commissioner also described a recruitment and retention challenge: the agency reported 32 vacancies last week, roughly a 12.4% vacancy rate; Grant said 10 new hires were scheduled to start this month and five offers were outstanding.
DLS recommended adopting narrative language requiring regular status updates on the insurance tracking system project. The administration agreed to provide clarifying corrections and committed to delivering periodic progress reports to the budget committees.
No formal motions or votes were recorded on the MIA budget during the hearing.
