The Massachusetts Division of Insurance (DOI) has released its Credit Insurance Report for the 2022 calendar year, which highlights a significant decline in credit insurance business over the past decade, now totaling approximately $2.5 million market-wide. This decrease is attributed to the replacement of traditional credit insurance products with debt cancellation and suspension products offered by banking organizations, which are not regulated by the DOI. The report outlines the various types of credit insurance, including credit life, credit disability income, and credit involuntary unemployment insurance, each with specific regulatory standards and loss ratio requirements as mandated by Massachusetts law.

In compliance with M.G.L. c. 175, 117C(b), the DOI collected data from insurers regarding their credit insurance experience, revealing that only three companies were actively writing credit insurance in 2022, while others were servicing closed blocks of coverage. The report emphasizes the importance of insurers reporting claims experience and loss ratio data annually, with the DOI reviewing this information to ensure compliance with statutory minimums. However, due to low premiums and insufficient data credibility, companies were not required to adjust rates this year, and the trend of declining premiums and claims information is expected to continue.