The Maryland Insurance Administration (MIA) does not set the homeowners or auto insurance rates that your insurance company charges. Maryland uses a “file and use” approach (also known as “competitive rating”), which is common in many states for certain types of insurance. File-and-use law allows insurance companies to adjust their rates based on market forces, usually without prior approval from the MIA. An insurance company sets, or may decide they need to change, the rates or premiums they charge for homeowners or auto insurance. After the insurer submits their rates or premium formulas to the MIA, along with information supporting the need for those rates, the insurer is allowed to use those rates. 

The MIA reviews all of the information filed by the insurer to determine whether the new rates are adequately supported by data and comply with Maryland law. The MIA’s role is to ensure that: the rates are adequate for the insurance company’s financial stability and its ability to pay claims; are not excessive; are reasonably related to all costs; and are not unfairly discriminatory. After reviewing a rate filing, if the MIA determines that the insurer did not provide enough information, the MIA can require that more data be submitted. If the insurer does not comply or if the data submitted by the insurer is insufficient, the MIA can disapprove proposed rates or rate changes already in effect. Under most circumstances, however, the MIA does not tell homeowners or auto insurance companies what rates or premiums it must charge. The goal is to protect consumers while enabling competitive insurance pricing that reflects market dynamics.