The 2024 Credit Insurance Report, prepared by the Massachusetts Division of Insurance, provides an overview of the credit insurance market, which has seen a significant decline over the past decade, with total market premiums dropping to approximately $2 million in 2024. This decline is attributed to the replacement of traditional credit insurance products with debt cancellation and suspension products offered by banking organizations, which are not regulated as insurance. The report outlines the types of credit insurance available, including credit life insurance, credit disability income insurance, and credit involuntary unemployment insurance, each with specific regulatory standards and loss ratio requirements.

The report also details the experience of credit insurance carriers for the calendar year 2024, noting that only three companies are actively writing credit insurance, with the majority of earned premiums coming from just two of these companies. The loss ratios for credit life and credit disability income insurance have fallen below statutory minimums, prompting the Division of Insurance to monitor compliance and adjust rates as necessary. However, due to low premium levels, companies were not required to make rate adjustments this year. The report emphasizes the ongoing trend of declining premiums and claims information in the credit insurance market.