Last week the Maryland Insurance Administration revealed that six new insurers have been licensed to do business in Maryland this year, and that 11 previously licensed insurers have been approved to sell additional insurance products. This is very good news not only for Maryland’s insurance industry, but for Marylanders as well.
The arrival of new insurers should inject competitive energy into our state’s insurance market and provide consumers with a greater range of options. The approved applicants include life and health insurers, as well as companies licensed to provide workers’ compensation, mortgage guaranty, and surety insurance.
The competitiveness of state insurance markets has been questioned for years, especially with respect to health insurance. Supporters of the Affordable Care Act hoped the law would increase competition, but now the industry is looking to consolidate further (see proposed merger between Anthem and Cigna). In light of these developments, today’s announcement comes as welcome news indeed. The more companies competing for business, the better.