Erie insurance has released the results of its latest survey that has shown that insurers have released so many humorous ads that are focused on the price of their products that consumers have been distracted from the actual coverage. Among the participants in the survey, 68 percent said that the majority of the funny auto insurance ads were focused on the money savings they provide. Though these same respondents said that the coverage that a policy provides is the most important thing to consider when buying insurance, 74 percent said…
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American housing market shows first signs of rebounding benefiting insurers
To the benefit of many insurance companies, the housing market in the United States is beginning to show some signs of recovery as mortgage companies begin their reappearance. New home loan guarantor, NMI Holdings, has just announced its hiring of the FBR & Co. investment bank in order to help in the raising of $550 million following the collapse of three of its competitors that were taken down by record homeowner defaults. Only one out of those three competitors remains anywhere above credits at a junk grade. Equally, Essent Guaranty…
Read MoreDepartment of Health and Human Services says that health insurance rates are too high in nine states
The Department of Health and Human Services (HHS) has announced that health insurance rates in nine states are far too high to be reasonable. HHS Secretary Kathleen Sebelius has determined that these rates are excessive under the authority granted to the agency by the Affordable Care Act. The law gives federal and state insurance regulators the authority to review health insurance rate increases of 10% or higher and determine whether they are necessary. The insurance companies in these nine states will be requires to justify their rates or make changes…
Read MoreReport shows that more insurers are looking to automate their underwriting process
Strategy Meets Action (SMA), a research and consultancy firm serving the insurance industry, has released a new report concerning underwriting practices in the industry. The report, “Underwriting Automation: Insurer Plans and Trends,” notes that insurance companies are making a move to completely automate their underwriting process. The report draws upon data collected by SMA from 144 insurance professionals throughout the industry. This trend may be a result of insurers being unable to meet underwriting goals due to flaws in their systems. Of those participating in the survey, 21% claimed that…
Read MoreGender gap continues to play an important role in health insurance premiums
According to the latest research issued in a report by the research and advocacy group, the National Women’s Law Center, women continue to pay higher premiums than men for the same health coverage. In 2014, when the new healthcare laws are fully implemented, the discrepancy between what men and women will pay for health insurance will cease, but at the moment, many states continue to see significant gaps between the premiums of men and women without any indication that the insurers intend to shrink them. The report will become available…
Read MoreOhio leads all other U.S. states for metal theft insurance claims
According to the National Insurance Crime Bureau, Ohio is the state in which there are the largest number of property insurance claims due to the theft of metals such as copper. This insurance fraud-fighting industry-supported organization revealed that there were 2,398 claims of this nature made by property owners in Ohio, within the three year span from 2009 to 2011. Comparatively, across the country, there were more than 25,000 claims of this type within that same period of time. This represents an increase of 81 percent over the number of…
Read MorePennsylvania Department of Insurance given new rate review authority under enacted law
A new law that will expand the authority of the Pennsylvania Department of Insurance has taken effect this week. The law was introduced last year and won approval from the state’s legislators. Governor Tom Corbett signed the bill, Act 134, into law late last year, with an enactment date of March 21, 2012. The law is nearly identical to similar legislation in California that gave regulators more authority over rate proposals coming from insurance companies. Legislators believe that new authority granted to the Department of Insurance will help protect consumers…
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