The Consumer Federation of America recently reported that the U.S. property/casualty insurance industry systematically overcharges policy holders and underpays on claims. Robert Hunter, the Consumer Federation’s Director of Insurance, reported at a news conference that the reason why insurance companies nationwide have secured record high profits is due to the fact that they have been systematically overcharging their customers, excluding coverage, low-balling claims, and ultimately laying the tab in the laps of the tax payers for the risks the insurers contracted to cover
In April 2007, the Insurance Information Institute reported that property casualty insurers in the United States posted 63.7 billion dollars in profits in 2006. This was the highest profit posted in the United States in the last 19 years.
Robert Hunter, who was formally the State Insurance Commissioner for the State of Texas, certainly has the background and work experience to comment on these issues.
For those of us that are regularly paying our premiums only to find out when it comes time to make a claim that there is some reason or excuse for avoiding the claim, this information probably comes as no surprise.