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Insurance agency briefs lawmakers on $22M IT project, complaints backlog and fraud staffing
Summary
The Maryland Insurance Administration told the Transportation and Environment Subcommittee the agency is implementing a multiyear replacement of its 1990s-era insurance tracking system with higher projected costs and plans to address a backlog of property-and-casualty complaints and bolster the fraud unit with new positions.
The Transportation and the Environment Subcommittee reviewed the Maryland Insurance Administration's fiscal 2026 allowance Feb. 19, hearing from DLS and agency officials about an information‑technology overhaul, complaint backlogs and fraud investigations.
DLS analyst Scott Benson summarized the MIA operating budget, saying the fiscal 2026 allowance increases to $57.9 million, a roughly $1.1 million (1.9%) increase, and that the largest share of the agency’s spending — about $36 million — is regular personnel costs. Benson told the committee the budget includes 13 new regular positions and a net decrease of seven contractual FTEs; the insurance fraud division is a major recipient of new positions.
Benson noted the insurance tracking system project, which began in planning in 2019 to replace a custom 1990s…
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