Insurance Journal’s Top 10 Midwest Region Stories of 2019

The expanding legalization of marijuana in Midwest states captured the attention of Insurance Journal readers last year. Illinois became the 11^th state to legalize recreational cannabis when Gov. J.B. Pritzker in June 2019 signed legislation doing just that. Missouri in late 2018 passed an amendment allowing for legalized medical cannabis, becoming to the 33^rd state to approve of medical usage of marijuana. Both states last year began preparing for legalization. Illinois vendors opened their doors on Jan. 1, 2020. Missouri continues to work on licensing businesses.

Marijuana is also fully legal — both recreational and medical — in Michigan, and among the states in Insurance Journal’s Midwest region, only three — Kansas, South Dakota and Wisconsin — do not have some form of legalization or decriminalization on the books. But interest is obviously high as some of the most popular articles in the Midwest region last year addressed legalized cannabis in some form.

The top three stories in IJ’s Midwest region for 2019 are:

The most-read article in the Midwest region, published very early in the year — Jan. 4, took up the issue of legalization in Illinois well before a law was passed and signed with a discussion of how the state would approach the regulation of what continues to be an illegal substance on the federal level.

Other well-read Midwest region stories that ran last year on the topic of cannabis legalization include: With New, Legal Cannabis Industries, Illinois and Missouri Can Learn from Pioneer States, Indiana’s Governor Still Against Legalizing Marijuana, Medical or Otherwise With Governor’s Signature, Illinois Is 11th State to Legalize Recreational Marijuana, Wisconsin Governor to Propose Decriminalizing Marijuana; Michigan Commission: THC Level Not a ‘Reliable Indicator’ of Driving Impairment; and In Midwest, Legal Marijuana Sales May Spark Interstate Tension.

It’s not much of a stretch to assume that cannabis legalization will continue to be a compelling topic during 2020 and for years to come.

The second most widely read article in the Midwest last year covered the announcement that American Family Insurance would buy Ameriprise Auto & Home (AAH) in a transaction worth more than $1 billion. Both companies are headquartered in Wisconsin — American Family in Madison and Ameriprise Auto & Home in De Pere.

The acquisition was finalized in the third quarter of 2019. American Family paid approximately $1.135 billion for the purchase of AAH from Ameriprise Financial.

Jessie Stauffacher, chief operating officer at American Family Insurance since 2017, was tapped to lead Ameriprise Auto & Home as president and CEO, succeeding Tom Ealy, who retired as president and CEO but served as a consultant through the end of the year.

Sharena Ali joined Ameriprise Auto & Home in the newly created position of chief operating officer. Ali had been senior vice president of partner distribution at Homesite, an American Family subsidiary that sells property insurance through partners. She joined Homesite in 2016 after leadership roles at AIG, Travelers and Progressive.

AAH sells its products through partners such as wholesaler Costco and Ameriprise Financial, through referrals from its financial advisors. Those partnerships will continue and AAH will actively seek new partnerships, the companies said.

The problem of how to lower the high cost of auto insurance in Michigan has been a topic of debate in that state for years, but in 2019 lawmakers finally succeeded in passing legislation aimed at lowering that cost. The bill passed in May, following an agreement between Republican legislative leaders and Democratic Gov. Gretchen Whitmer. Under the bill, drivers may choose forego a one-of-a-kind requirement to buy unlimited medical coverage for crash injuries. Whitmer said the legislation would guarantee rate reductions for every motorist and offer choices for personal injury protection, or PIP, levels.

Michigan has been the only state to require unlimited PIP benefits, which critics say contributed to its status as the state with the country’s highest car premiums. The unlimited PIP benefits cover medical treatment, rehabilitation expenses, lost wages for three years and up to $20 daily for assistance with things like cooking, cleaning and other services people can no longer carry out due to their injuries. Starting in mid-2020 people will be able to forego PIP entirely if they have health insurance such as an employer plan or Medicare. Other options will include sticking with unlimited coverage or choosing either $250,000 or $500,000 worth. Those on Medicaid will have to carry at least $50,000 in PIP.

Passage of a bill to cut car insurance rates was a priority for Republican lawmakers. Quicken Loans’ Dan Gilbert was so serious about the issue he launched a ballot drive as a “failsafe” in case legislation to lower rates failed. His aim was to enable GOP lawmakers to overhaul the no-fault law without having to worry about a gubernatorial veto.

Other widely read Midwest stories from last year include: