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DIFS Issues Bulletin to Lower Costs, Protect Michiganders from Discrimination and Unfair Insurance Premiums

Media Contact: Laura Hall, 517-290-3779,
Consumer Hotline: 877-999-6442,


(LANSING, MICH) Michigan Department of Insurance and Financial Services (DIFS) Director Anita Fox has taken action to lower insurance costs and protect Michiganders from unfair practices that could be used by insurers when setting premiums. In a bulletin issued today, the Department made clear to insurers that price optimization is prohibited under state law as unfairly discriminatory and may not be used in setting rates for home, auto, and other types of insurance policies.

“We will not permit insurers to use price optimization to unfairly increase insurance premiums for Michiganders,” said Director Fox. “Today's bulletin reinforces that DIFS will take every possible step to ensure that Michiganders are charged a fair premium as we work to protect consumers and help them keep their insurance costs down.”

Price optimization is a profit-maximization strategy that is used to charge consumers the highest rates that they will tolerate. Price optimization includes insurers using data on how the consumer has reacted to previous premium increases to predict how much the premium can be raised before the consumer would shop around for a different insurer.

DIFS is the state consumer protection agency that regulates the insurance industry in Michigan. As part of DIFS’ regulatory responsibilities DIFS reviews all rate filings to ensure that price optimization is not occurring. In addition, companies making rate filings must also attest that they do not use this prohibited practice. DIFS will take appropriate regulatory action against any insurer that employs price optimization in any form.

Michiganders who feel they have been subjected to price optimization, or any other unfair practice, should file a complaint with DIFS online at For other questions or concerns about their insurance policies, Michiganders should call DIFS at 877-999-6442, Monday through Friday from 8 a.m. to 5 p.m., or visit for more information.

The mission of the Michigan Department of Insurance and Financial Services is to ensure access to safe and secure insurance and financial services fundamental for the opportunity, security, and success of Michigan residents, while fostering economic growth and sustainability in both industries. In addition, the Department provides consumer protection, outreach, and financial literacy and education services to Michigan residents. For more information, visit or follow the Department on Facebook, Twitter/X, or LinkedIn.