Report: Insurers fleece public

January 12, 2008

I love the St. Pete Times. Here is a report that it did on how the big insurance companies have ripped off their policyholders.

The property insurance industry not only racked up near-record profits in 2007 – about $65-billion after taxes – but overcharged American homeowners an average of $870 per household over the last four years, says a new report from major consumer groups.

That study’s conclusion – insurers systematically overcharge consumers and underpay claims – was released Thursday by the Consumer Federation of America, Consumers Union and several other consumer groups. The findings blasted a powerful industry about to be challenged anew in Florida on several alleged price-gouging fronts by the state government.

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  • Richard January 13, 2008 at 2:32 am

    The “NATION” has allowed insurance companies to drop all high risk items while charging about what they used to charge for low risk items. A solution that makes sense is to let tax payers “SELF INSURE” on a nationwide basis … all risks from the minor ones to tornados, high winds in the mountains, winter storm damage in the NE, fires in California, hurricanes along the coast … everything. The insurance companies have failed America, are gouging America and should be eliminated.
    The tax payer has to toss in his own dollars following major damages anyway, so this would solve that problem. Add top of the line auditing and corruption risks will be minimized. Yes I know a year or two won’t go by and we’ll read about it somewhere … but deal with it as a crime and resolve it.

  • Anonymous January 12, 2008 at 10:00 am

    Maybe the state should be focusing on how to reduce these costs instead of a measly property tax cut.