Claims News Service, Dec. 15, 9:42 a.m. EST -- A study recentlyreleased by the Insurance Research Council finds that the publicgreatly overestimates the profitability of the homeowners'insurance market.
According to the study, most Americans believe that homeowners'insurers earn an average of $33 in profit for every $100 receivedin premiums. In reality, from 1995 through 2004, insurers averagedan underwriting loss of $9 per year for every $100 received inpremiums.
Only recently has the market broken even or better. In 2003,insurers' profits equaled zero. In 2004, the homeowners' marketmoved into the black, with insurers earning between one and ninedollars in profit.
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