Advocacy News – Dec. 11, 2025
What’s happening: The Senate Finance Committee heard testimony on a proposal – SB 245 –that would expand opportunities to sue in insurance claims resolution, inviting more litigation and disrupting Michigan’s insurance market.
- The result: significantly higher insurance premiums across all sectors.
Why it matters: Affordability is already a major concern for Michigan families and businesses. This proposal would drive insurance costs even higher by creating new legal rights to sue and incentivizing more courtroom battles instead of resolving claims efficiently.
- An independent analysis by Milliman of similar policies projects $2.4 to $4.7 billion annually in added insurance costs, equal to 11%–21% premium increases for Michigan policyholders.
And there’s a track record. Other states that tried this saw immediate consequences:
- Florida became the most expensive homeowners’ insurance market in the country, and had to repeal after premiums soared nearly 20%.
- California, Washington, Louisiana, and New Jersey also experienced spikes in lawsuits, fraudulent claims and rapidy rising premiums.
- Louisiana now ranks as the least affordable state for auto and home coverage, costing residents $1,100 more per year.
What we are saying: The Michigan Chamber is is warning that this lawsuit expansion proposal is a costly step backward. It would encourage legal system abuse, destabilize the insurance market and raise premiums for Michigan policyholders.
Contact Randy Gross with Qs or to get involved.