The American Association of Insurance Services has filed to reduce its advisory loss costs for Michigan homeowners insurance by 26.7%, marking its first revision in the state since 2015.

AAIS selected decreases of 26.5% for owner-occupied homes and 28.5% for non-owner forms. Its actuarial analysis indicated a larger overall reduction of 51.1%, but the organization selected a more moderate change.

The filing estimates a $1.58 million reduction in written premium across 4,439 policies representing approximately $5.9 million in premium. The analysis primarily uses accident-year loss data from 2020 through 2024.

AAIS used catastrophe models from Cotality and Moody’s RMS to evaluate risks including earthquakes, windstorms and hail. The proposed loss costs would take effect Dec. 1, 2026, subject to regulatory approval.

Because AAIS provides advisory loss costs, the filing does not automatically change consumer premiums. Member insurers must decide whether to adopt the revisions and submit their own rate filings where required.

Bottom Line: The filing points to improving homeowners loss experience, but it is primarily a correction to AAIS assumptions that had not been updated since 2015—not yet evidence of a broad decline in consumer premiums.