• Minnesota the Latest State to Join the Price Optimization Bandwagon
  • November 17, 2015
  • Law Firm: Sutherland Asbill Brennan LLP - Washington Office
  • The Minnesota Department of Commerce has issued Administrative Bulletin 2015-3, barring the use of price optimization in ratemaking by property and casualty insurers. The Bulletin states that “[p]rice optimization is not an actuarial estimate based on expected losses, expenses, and the degree of risk,” and it therefore concludes that the use of price optimization is unfairly discriminatory and violates Minnesota law. The Bulletin directs insurers using price optimization in Minnesota to cease the practice and submit revised filings along with a corrective action plan. In the future, property and casualty insurers must submit with their rate filings an attestation that price optimization is not being used.

    To view the full Bulletin, visit http://mn.gov/commerce-stat/pdfs/insurance-bulletin-price-optimization.pdf.