Michigan Business Network: New Study Shows Proposed Legislation Could Increase Costs For Michigan Consumers By Nearly $5 Billion
Local businesses, trade associations, and nonprofit organizations have joined together to launch the Don’t Touch MI Rates Coalition with the simple mission of protecting hard-working Michigan families and small businesses from so-called “bad faith” legislation introduced in the Michigan Legislature. Today, a member of the coalition, The American Property Casualty Insurance Association (APCIA), has released a study on the economic impact of proposed bad-faith insurance reforms in Michigan showing the bills could impose big costs on consumers if signed into law.
In fact, the changes in House Bill 4681 and Senate Bill 329 would create 35 new avenues for legal action against insurance companies, creating a potential cost to Michigan consumers ranging between $2.4 billion and $4.7 billion or 11 percent to 21 percent on average across all types of insurance policies (as indicated on page 16 of the report). The potential for disruption of the insurance market could lead to higher auto, home, and other insurance costs for all Michiganders.