Insurance Industry Has Unexpected Response to MN Legislation

When the Minnesota legislature struck down an amendment that could have made it possible for insurance companies to pay non-network auto glass shops network prices, many independent glass shops celebrated and claimed victory over the insurance industry.

But what about insurers? Do they see the legislature's decisions to strike the amendment out of an omnibus bill as a defeat? Not really.

One Midwestern insurance industry executive, who requested not to be named, actually supported the Minnesota Legislature decision. "I don't think it would be fair to make non-network shops accept network prices, they don't get any of the network benefits," he said. "And that's not fair."

To State Farm, the Minnesota legislature's decision was a non-story. Bob Bischoff, national glass manager for State Farm, said that even if the measure had passed, it would have had little effect on State Farm's Offer and Acceptance policy. "State Farm supports an open and deliberative regulatory and legislative process," said Bischoff, who also emphasized that State Farm had no input in the wording of the amendment.

The Midwestern insurance exec would rather just see government stay out of the pricing process altogether. The executive said, "legislating the pricing for one side of the other is not right… I would like to see more competitive pricing in Minnesota, but that's (legislative action) not the way to do it."