California Insurance

Despite widespread agreement that auto insurance is a crisis of the need for reforms in many countries, most of the restructuring efforts remain stalled or ineffective, forcing drivers increasingly pay price high and insurers to familiarize themselves with the escalating legal, medical and automotive repair costs.

The announcement last week by the Allstate Insurance Company, it is intended to manage a company in New Jersey, where it is the largest auto insurer, was the latest example of the confusion and ‘destruction of buildings around the theme in some populous U.S..

Allstate New Jersey said the official was improperly denied, it increases despite years of losses and rising costs. New Jersey, regulators and consumers for Allstate responded that operations were inefficient and that the company should lower their prices. A national problem

Here in California, the regulatory authorities to stay connected in a legal battle with industry on the question of whether the state can compel insurers to reduce rates, as a proposed ballot spent nearly three years. Most drivers in California, have long abandoned hope, the reductions promised at any time, quickly and for many, prices continue to rise.

Massachusetts, have both tried to deregulation and regulation very tight - only to note that neither the pleasure of consumers or industry system - is now obliged to regulatory review its third in 15 years.

While auto insurance, the most serious problems in New Jersey, California, Massachusetts, Texas, Pennsylvania, South Carolina and a handful of other countries, there are up to a certain degree of nearly of Germany.

Insurers have argued that, for years, the capture of rising costs over which they have no control - for medical care, auto-body repair, fraud and charges - and a match against the Rising prices for consumers and politicians, Sens a new theme emotionally.

Many insurers say that the money they lose, in some states - Allstate argued that they lost $ 72 million in automobile insurance in New Jersey during the last year - and that the company is an unprofitable in other countries. Orrin Kramer, an industry consultant in Princeton, New Jersey, said the auto insurer in Germany lost 1 cent for every $ 1 of premium, from 1986 to 1990.

“Average profitability is much lower rates of abolishing courts, so that a poor or bad business quite profitable,” said Kramer.

Further analysis, however, indicate that the industry remains profitable of all nations and greater self-insurance, State Farm, in each state, said their activity was still relatively healthy. CA (Pete) Ingham, State Farm Mutual Automobile Insurance Company’s General Counsel, said the company has no retirement plans of each State, when he fights tariff regulatory authorities in a number of countries, including New Jersey. Indeed, despite some threats, few companies have made major markets like California and New Jersey, because the exchange rate regulation.

Some companies, including Aetna Life and Casualty Company, auto insurance business in many countries. But their differences result for the bulk of its commitment to sell independent intermediaries. These sales systems are increasingly expensive and unprofitable face increasing competition by insurers with their own sales forces or competitors, officials and waives any directly with customers by telephone and mail.

“We are talking here about an industry with lower profits, lower profits and a multitude of problems,” said Sean F. Mooney, an economist at the Institute of Information of insurance, industry Research funded by the organization. “Costs are rising and prices do not increase enough to cost increases due to regulatory constraints, particularly in states like California and New Jersey.”

Some consumer groups and the growing number of politicians say, insurance companies must learn, the administration cut costs and live with less profit.