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Delaware Prohibits Price Optimization; Seeks New Filings

Oct. 6, 2015 AAIS Advisory notice

Delaware has joined the growing number of states that have banned "price optimization" in insurance pricing. A recent bulletin directed to personal lines insurers in Delaware states the following: 

"To the extent that price optimization involves gathering and analyzing data related to numerous characteristics specific to a particular policyholder and unrelated to risk of loss an expense, insurers may not use price optimization to rate policies in Delaware."

Insurers that currently use price optimization to rate policies in Delaware are directed to submit substitute filings compliant with Delaware law by Dec. 15, 2015. The filings are to take effect no later than April 1, 2016 for new policies and July 1, 2016 for policy renewals.


AAIS Advisory notices are posted periodically to announce AAIS product developments, and to provide news items that are relevant to our program users. Advisory notices are news summaries that paraphrase documents which should be consulted directly for complete, authoritative information.

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