The American Insurance Association ("AIA") and the Property Casualty Insurers Association of America ("PCI") have issued a letter to state insurance commissioners responding to what they characterized as the "oversimplified and overstated claims about the federal Tax Cut and Jobs Act" effect on insurance premiums made by the Consumer Federation of America ("CFA") and the Center for Economic Justice ("CEJ").

The AIA/PCI letter stated that the property and casualty insurance industry's "outstanding track record of price competitiveness" meant that "any bottom-line benefits of the tax bill will ultimately be felt by consumers in the market place."

However, the insurers added, the impact of the new tax law will differ significantly from insurer to insurer, from line of business to line of business, and from state to state. Therefore, the AIA and PCI urged state insurance regulators to "carefully consider the complexity of the tax law and the significant differences in potential impact across insurance products and lines of business before responding to the CEJ-CFA letter."