Home & Auto Insurance Carriers Take A Hit In 2011
Leap Year Post Date 2.29.2012 – A recently Consumer Federation of America (CFA) report accuses property and casualty insurance carriers of taking advantage of those consumers needing coverage. Some say some Property and Casualty Auto Insurance Companiesare overcapitalized, they are not interested in taking on more risk by writing more Cheap Auto Insurance Policies. As a result auto insurance regulators will block attempts by some insurance carriers to raise rates in an attempt to increase profit.
The same car insurance company disagree with the claim and state they did take on significant risk from both existing and new clients and will continue to do so. The Property and Casualty Insurers Association of America say 2011 was a challenging year for its members due to a confluence of natural disasters that hit the US. Private Car insurance carriers suffered net underwriting losses of $35 billion last year.
The Insurance Information Institute also took major issue with this report saying that it creates the wrong picture of what is really true. Both Car Insurance and Homeowners in over ten states are facing increases on their property insurance rates. Property and Casualty insurance carriers are seeking to increase rates by 20% or more in order to offset losses felt in 2011. State regulators whom oppose the increases feel it will place further burden on homeowners coping gradually with the after-effects of the economic downturn. At the same time, regulators are putting pressure on congress to reform the National Flood Insurance Program. They feel they need to protect consumers and boost private sector investment in this insurance sector.
Michael E. Dortch
President & Managing Agent
Corporate Home Office
618 South Broad Street
Lansdale, Pennsylvania 19446
(800) 807-0762 ext. 602