The Massachusetts Division of Insurance (DOI) has released its Credit Insurance Report for the 2023 calendar year, which highlights a significant decline in credit insurance business over the past decade, now totaling approximately $2 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, and emphasizes that lenders cannot require borrowers to purchase credit insurance as a condition for obtaining a loan.

The report also details the statutory requirements for loss ratios associated with each type of credit insurance, with credit life insurance requiring a minimum loss ratio of 50%, credit disability income insurance at 55%, and credit involuntary unemployment insurance at 60%. In 2023, only three companies were actively writing credit insurance, with the majority of earned premiums coming from these entities. The DOI is tasked with reviewing each company's loss ratio experience to ensure compliance with statutory minimums, but this year, the reported data did not meet the necessary credibility thresholds, resulting in no required rate adjustments. The report indicates a continuing trend of declining premiums and credible claims information in the credit insurance market.