Missouri DOI Prohibits Price Optimization

Wednesday, January 13th, 2016 Legislation & Regulation Risk Management

The Missouri Department of Insurance recently sent out a notice among insurers in the state, announcing the prohibition of price optimization; this marks Missouri as the seventeenth state to ban the practice. The state regulator reasoned that price optimization infringes state law regulating property and casualty insurance. According to state legislation, insurance rates must be set based on the insurer’s expected claims, cost of operating business, and the risk profile of the customer.

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http://www.ibamag.com/news/yet-another-state-moves-to-ban-price-optimization-27591.aspx

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