Insurance Prices May Fall
January 15, 2008
There may be some good news for those who are paying high insurance premiums. For the first time since WW II, some premiums for certain types of casualty and property insurance are expected to decrease. This could happen as soon as fall of 2008. The exception to this may be those areas that are located in flood planes and hurricane zones.
The reason for the decrease is mainly due to competition. Insurance companies are competing hard against one another to earn new business and keep loyal customers. A recent survey by the Insurance Information Institute estimates that premiums for property and casualty insurance may drop by as much as 0.3 percent in the near future.
Some of the other reasons for the decrease include decreasing prices on government provided re-insurance, an increase in the popularity of catastrophe bonds, more self-insurance policies, and, of course, growing competition between the insurers. This is especially true with vehicle insurance.
Many insurers have seen their bottom line either remain flat or show increases in profits, which allows them to be more flexible in their pricing formulas. Consumers who have home and/or auto insurance may want to review their policies and premiums in the coming months to ensure they are getting the best deal.