5 minute read
Interview with PA Insurance Commissioner
Interview with Pennsylvania Insurance Commissioner Michael Humphreys
Michael Humphreys came to the Pennsylvania Insurance Department (PID) in 2019 to serve as chief of staff under then-Commissioner Jessica Altman. In February 2022, Humphreys was named Acting Insurance Commissioner. The Pennsylvania State Senate unanimously confirmed him in June 2023.
Humphreys and his staff at PID have been generous with their time and open to dialogue with IA&B and our members, and we look forward to continuing to strengthen our relationship.
Q. You come to Pennsylvania by way of the Tennessee Department of Commerce and Insurance. What brought you to Harrisburg? And how does the insurance market compare between Pennsylvania and Tennessee?
A. I’m a native western New Yorker, so Pennsylvania is much closer to home than Tennessee. Pennsylvania is the sixth largest U.S. insurance market with more than double the premium volume of Tennessee, which ranks 17th. Pennsylvania has more competition among the largest insurers in the P&C market, where Tennessee has a few dominant players. On the health side, Pennsylvania has three Blues companies and three hospital-insurer systems where Tennessee had one Blue and did not have significant hospital-insurer system participation.
Q. Your office worked closely with Pennie to launch the state-based health insurance exchange in 2020. Tell us about the evolution of the Commonwealth’s health insurance marketplace and the role for independent insurance producers in it.
A. Pennie was a significant bipartisan achievement that continues to help nearly 400K Pennsylvanians connect to high-quality comprehensive health insurance coverage. We have seen health insurers join the Pennsylvania market and/or expand their footprints across Pennsylvania every year as the market has stabilized. Pennie, and our reinsurance program that was enacted with the Pennie authorizing statute, have contributed to a market that is seeing rate increases in the low single-digits, on average, over the last few years and Pennsylvania experiencing its lowest-ever uninsured rate. Insurance producers engage in Pennie operations, and producer feedback is shared with Board Members when we consider operational improvements and efficiencies.
Q. As the total flood market grows, the percentage written by private insurers (as opposed to the NFIP) is increasing even more rapidly. What trends are you seeing in Pennsylvania and beyond?
A. We are seeing private flood insurance numbers grow. The number of private residences covered by non-NFIP flood insurance has grown from approximately 1,500 in 2016 to almost 16,000 in 2023 – but there remain far too many properties uninsured for flood in the Commonwealth. In fact, while there are approximately 3.1 million insured homes in Pennsylvania, only a little over 50,000 of those homes are insured for flood damage (NFIP and private insurance combined). Closing this coverage gap is a challenge that will take significant public-private collaboration as there is more that each of us can do to elevate public awareness of flood coverage. I’m currently chairing a new Flood Insurance Premium Assistance Task Force that will deliver a report to the Pennsylvania General Assembly later this year on flood coverage costs, mitigation, and awareness that I hope advances the conversation about how to better protect Pennsylvanians.
Q. The P&C market has been hardening for several months. Agents are on the frontline and seeing significant premium and deductible increases, policy cancellations, and refusals to write. What is PID’s perspective, and what actions can the Department take to foster continued market availability while protecting consumer rights?
A. PID has always sought to be fair in evaluating insurer policy and rate requests. We have one of the best P&C actuarial teams in the country, and I expect that team to require justification for rate increases, scrutinize claims histories and forecasts, and ultimately approve a rate that is fair for the policyholder and the insurance company. We recognize that a competitive market best serves Pennsylvanians in terms of providing choice of coverage, price, and insurance company, and we seek to be both responsive and proactive in our approach to market conditions.
Q. What are your priorities during your tenure as Insurance Commissioner?
A. We’re going to raise awareness of the Insurance Department and the services that we provide Pennsylvanians, often in their greatest times of need. Too many individuals don’t know we exist. We are getting out into communities more to meet Pennsylvanians where they are and to hear their stories. Gov. Josh Shapiro has also made mental health and substance use disorder treatment parity a priority – and PID is in full support of that vision to make mental health parity a true reality for Pennsylvanians. We are also building our presence in college and university classrooms where we are developing future insurance leaders through our NextGen program. We're going to make sure that people know when they need help with an insurance policy or claim, the Insurance Department can assist them.
