Insurers Realize Profits While Also Cutting Premium Rates, Boosting Dividends

INSURANCE INFORMATION INSTITUTE
Contact: Press Offices
New York: 212-346-5500; media@iii.org
Washington, D.C.: 202-833-1580


NEW YORK, January 9, 2008 — Auto, home and commercial insurers were profitable in 2006 and 2007, a development that has resulted in either stable or lower premium prices for most U.S. consumers, according to the Insurance Information Institute (I.I.I.)

“Today, insurance markets are highly competitive and the majority of U.S. drivers, homeowners and businesses are paying only modestly more in premiums, or in many cases less, for insurance than they were just a few years ago.” said Dr. Robert Hartwig, president of the I.I.I. “The major exception to this general trend is hurricane-exposed coastal property insurance coverages, where insurers are seeking to charge premiums commensurate with the substantial risk they assume.”

“The vast majority of the industry’s profits in 2007 will be reinvested back into the business,” Hartwig continued. “Profits continue to bolster the industry’s policyholder surplus, a measure of claims paying capacity, providing an additional buffer against the mega-catastrophes that lie ahead.”

To arrange an interview with Dr. Hartwig, contact Mike Barry at michaelb@iii.org or 212-346-5500.

For more information about insurance and how consumers and business owners can save money on insurance, go to the I.I.I. Web site.


The I.I.I. is a nonprofit, communications organization supported by the insurance industry.