Negative remarks can often be quelled when matched with a powerful opposing argument, as the insurance industry recently reaffirmed.
It is perhaps fortuitous that just as the Consumer Federation of America (CFA) was releasing its annual attack on industry profitability, insurer executives gathered in New York to lament the future troubles of the companies, as competition swells and premium growth opportunities dwindle. Given the timing of both events, the industry has ready examples for why the CFA’s plaint that every household in the nation is overcharged by $870 a year is nonsensical and damaging to an already shaky public view of insurance.
Although consumer advocates display outrage at one year of profits, insurers are worried that 2007 might be the last good year they will see for some time. Is it enough of a recovery to carry companies through a soft market with no end in sight, as suggested by the Risk and Insurance Management Society’s (RIMS) quarterly survey released this week?