AZ| The Arizona Department of Insurance and Financial Institutions issued Substantive Policy Statement 2025-02 to address concerns about unregistered or unlicensed entities providing statistical data and predictive modeling services to insurers for rate-making purposes, which may require a permit or license under Arizona law. The Department acknowledges industry challenges in adapting to evolving rate development practices and will not enforce compliance actions or reject filings based on the use of unregistered advisory or rate service organizations until at least January 1, 2027, while it collaborates with stakeholders to develop a workable compliance framework.
- The Department observed a rise in unregistered entities assisting insurers with rate-making through statistical data and predictive models, reminding the industry that such activities require proper registration or licensing under Arizona statutes.
- No enforcement actions or filing rejections will occur regarding this issue before January 1, 2027, as the Department seeks stakeholder input and works toward regulatory solutions, with an initial meeting scheduled for May 2025.