Major insurance companies representing thousands of Michigan employees and millions of customers statewide have joined forces to create the Insurance Alliance of Michigan (IAM), with a goal of speaking with a single, unified voice on insurance industry issues.
Comprised of two major statewide organizations, the Insurance Institute of Michigan and the Michigan Insurance Coalition, the new IAM says its top priority will be working with legislators in both parties to address Michigan’s no-fault automotive insurance system.
“This historic alliance will help us speak as one voice,” says Pete Kuhnmuench, executive director of the IAM. “Now is the time to roll up our sleeves, get to work, and help bring down the exorbitant cost of auto insurance in Michigan and advocate on behalf of insurance employees and their customers that have made our industry a bright spot in Michigan’s economy.”
According to data released in January by the National Association of Insurance Commissioners, Michigan drivers, on average, paid $1,350 in 2014 for auto insurance premiums, almost twice as much as drivers in neighboring Ohio, Indiana, and Wisconsin.
The reason for the high costs is that Michigan law requires insurance companies to care for patients involved in catastrophic injuries for as long as they live, something the insurance companies have long tried to derail.
The Insurance Alliance of Michigan will be headquartered in downtown Lansing and represents property/casualty insurance companies that annually underwrite more than $12 billion in insurance. IAM member companies provide insurance to approximately 70 percent of the property/casualty insurance market in Michigan.