UPDATED: Feb 25, 2020
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The Consumer Federation of America has targeted property and casualty insurance companies in a recent report. The group said insurers paid out 55 cents in benefits from each dollar of premium collected in 2007. While that is up one cent from 2006, the group cites a discerning downward trend. From 1987 to 2005 insurers paid out anywhere from 60 to 75 cents per dollar of premium collected. The group contends this amounts to nothing less than overcharging consumers while underpaying on obligations.
The insurance industry apparently disagrees with these claims and states recent lower payouts are a result of the catastrophic hurricanes the nation has experienced over the past few years.
The Insurance Information Institute shows that property and casualty insurance companies posted a 19-year record profit of $63.7 billion in 2006.