Maryland Auto Insurance Fund forecasts smaller assessment as policy count and claims shift

Maryland Auto Insurance Fund officials told the Transportation and the Environment Subcommittee that the fund's calendar 2025 budget will rise and that ongoing industry shifts could reduce the assessment the fund expects to levy on insurers.

Scott Benson, the committee's legislative analyst, summarized Department of Legislative Services findings that calendar 2025 budgets increase by $2.7 million (7.3%) to $40.3 million, and that the insured division is driving most of the change. Benson noted the insured division has operated at a net loss since 2023 and that an assessment projected for 2025 would help restore surplus levels.

Maryland Auto's government relations manager, Devon Brown, introduced the agency panel and turned the presentation to Director Al Redmer. Redmer told the committee that market behavior following the pandemic first reduced claims and then led to large losses in 2021–2022 as carriers tightened underwriting and stopped writing…