The property-casualty industry has “dramatically” increasedprofits and surplus in recent years, in part by “systematicallyovercharging for insurance and shifting costs to consumers andtaxpayers,” the Consumer Federation of America charged in a reportreleased last week that was blasted by insurers.
The report–first revealed in the Jan. 8 edition of NationalUnderwriter–drew immediate fire from industry trade groups and asecurities analyst who characterized it as misleading because itseeks to lump all product lines together, which the critics said isinappropriate.
Moreover, Gary Ransom, a managing partner and p-c industryanalyst at Fox-Pitt Kelton, said the report examines the issue ofhomeowners insurance only for 2006, when it was profitableeverywhere, even though overall, “all the premiums ever collectedfor property insurance in Florida and the Gulf Coast have notcovered all the [recent hurricane] claims on those properties.”
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