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-wide premiums dropping to approximately $2 million. 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, 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 loss ratios for credit insurance products over the past three years, highlighting that the loss ratios for 2024 fell below the statutory minimums, with credit life insurance at 25.81% and credit disability income insurance at 31.69%. Due to the low premium levels, companies were not required to adjust their rates this year. The report indicates that only three companies are actively writing credit insurance, with the majority of earned premiums coming from just two of them. The Division of Insurance continues to monitor the market and expects the trend of declining premiums and credible claims information to persist.