The latest insight into the Maryland insurance market
Peer-to-peer (P2P) personal auto rentals appear ready to rock the industry, while the workers’ compensation (WC) market remains “competitive.” Those are two top takeaways from the legislatively mandated reports released this week by the Maryland Insurance Administration (MIA).
PEER-TO-PEER PERSONAL AUTO RENTALS
Earlier this year, the MIA and state legislature became aware of TURO and other Internet platforms that allow for the listing and rental of personal automobiles. At the request of state Sen. Thomas “Mac” Middleton, the MIA convened a working group during the summer of 2017 to identify insurance issues related to the P2P sharing economy. The group found:
There is a need for clarification of existing insurance laws and their applicability to the P2P market model. A further need may exist for new legislation that allows for the evolution of both the traditional and P2P motor vehicle rental markets [emphasis added]….
WORKERS’ COMPENSATION MARKET
The MIA’s annual report on the WC market to the Joint Committee on Workers’ Compensation Benefit and Insurance Oversight provides an in-depth look at the market and the 2017 legislation that impacts it. Highlights include:
- Competitive market: The MIA asserts that the WC market remains “competitive,” citing the number of insurers and spread of market share among them.
- Declining loss costs: The National Council on Compensation Insurance (NCCI) filed a decrease in premium loss costs of -13.0 for 2018. This marks the fourth – and most drastic – decrease filed by the NCCI in as many years.
- Robust group of insurers: WC is the third largest line of property and casualty insurance in the state with 92 insurance groups offering coverage. The most recent statistics found that the top eight insurer groups (including the Chesapeake Employers’ Insurance Company) wrote over 63 percent of the market.
In addition to these, the MIA released reports on: