N.Y. To Review Auto Insurance Rates
NU Online News Service, Nov. 29, 9:57 a.m. EST?New York State Insurance Superintendent Gregory V. Serio said his department will meet with auto insurers to discuss rate cuts for private passenger vehicles.[@@]
"It is time for the companies to reevaluate their rate structures and loss experience and return to the people of New York the anti-fraud dividend that is the yield of this hard work," he said, referring to state anti-fraud activity that has saved insurers money.
Within the next 30 days, the department plans to meet with representatives from Allstate, CNA, GEICO, Hartford, Liberty Mutual, Metropolitan, Nationwide, New York Central Mutual, One Beacon, Progressive, State Farm and USAA. The 12 companies represent 60 percent of the state's auto insurance market, the department said.
The department said it is holding the meeting to review rate structures in the face of significant declines in losses in the auto insurance market.
New York insurers' overall loss ratio in the private passenger market for 2002 stood at 86 percent, dropping to 61 percent as of June this year. Personal injury protection per claim losses dropped to $6,229 as of June 2004, compared to $8,489 per claim at the end of 2002.
Mr. Serio credited the improved results with the state's aggressive fight against insurance fraud.
The review will include policies written in the state's assigned risk plan, New York Auto Insurance Plan. Policyholders in the plan received a two-percent rate decrease in August.
The department noted that Progressive and State Farm implemented rate reductions this year.
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