financial responsibilityThe MCCA’s Financial Stability
About Our Financial Stability
The MCCA maintains a strong financial position to support our commitment to lifetime care for catastrophically injured claimants. Michigan is the only state in the nation to offer unlimited Personal Injury Protection coverage, which makes the MCCA a unique, one-of-a-kind entity.
We invest conservatively, aiming for long-term stability and consistent returns. This approach shields the MCCA’s funds from market volatility while generating the investment income needed to keep pace with rising medical costs.
Independent Review & Verification
Every year, independent actuaries evaluate the MCCA's reserves to determine if we have enough funding to meet projected future claims. These actuarial reviews assess expected claim costs, medical inflation trends and investment returns to validate our financial position.
Independent auditors also review our annual financial statements to ensure they are accurate and that they meet accounting standards. These two layers of independent oversight give us confidence and assurance that our financial reporting is transparent, trustworthy and reliable.
The Michigan Department of Insurance and Financial Services (DIFS) conducts regular financial examinations as an additional layer of regulatory oversight.
Investment Strategy & Results
The MCCA's investment portfolio has consistently provided returns that match or outpace medical inflation over time. This performance is important because it lessens the need for assessment increases and helps keep the MCCA's ability to reimburse intact, allowing the no-fault catastrophic claims system to continue.
This chart displays the MCCA's asset growth versus medical inflation since inception. Our careful investment strategy focuses on stability and long-term growth instead of short-term gains. This commitment ensures we can meet our obligations no matter where the market conditions stand.
Click the chart above for a closer look.
Managing Risk
The MCCA employs effective risk management practices to protect funds and to ensure long-term stability:
Portfolio Diversification: Investments are spread across asset classes to reduce concentration risk
Actuarial Reserves: Regular reviews ensure reserves are enough for projected future costs
Assessment Mechanism: Per-vehicle assessments can be adjusted to keep funding levels steady
Regulatory Oversight: DIFS’s monitoring provides an additional safeguard for financial soundness