Tag: Consumer Federation of America

Auto insurance pricing draws ire of consumer advocacy group

Marc
Auto Insurance Survey

Survey shows consumers believe auto insurance pricing is unfair The Consumer Federation of America, a consumer advocacy group, has released the results of a survey it conducted last week concerning how people feel about their auto insurance coverage. The group suggests that, according to the survey, many consumers feel that they are facing unfair pricing practices concerning their auto insurance coverage. These consumers claim that their policies are being prices based on information concerning their occupation, education level, and marital status. Group finds that certain factors hold significant influence over…

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Consumer group warns that insurers may be manipulating claims payouts

H. Cutner
insurance industry report

Organization warns that software is allowing insurers to make reduced payments on injury claims The Consumer Federation of America has issued warnings this week concerning software that is often used by many of the largest insurance companies in the U.S. The organization, which works to establish a more consumer-friendly atmosphere in a number of different industries, claims that this insurance system is susceptible to manipulation, allowing insurance companies reduce their payouts concerning home injury claims. The organization has released a report detailing the shortfalls of the system and calling for…

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Advocacy group calls upon New York regulators to take action against force-placed insurance

S.Vagus
force placed insurance

New York regulators urged to be examples in the fight against controversial insurance practice The Consumer Federation of America (CFA), a consumer advocacy group, has called upon New York insurance regulators to tackle the issue of force place insurance for homeowners. The New York Financial Services Department has been holding public hearings concerning a number of issues of importance in the state. During one of these hearings, CFA Insurance Director J. Robert Hunter petitioned insurance regulators to take a stand against the controversial practice of force-placed insurance and become national…

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Insurers pulling out of markets in the wake of natural disasters

S.Vagus

The natural disaster rate climbs as industry reevaluates high risk areas. Natural disasters seem to be happening more regularly, a fact that the global insurance industry is becoming uncomfortable with. In terms of insurance, powerful storms and weather-related catastrophes are becoming more commonplace. As such, insurers are feeling the pressure of increased liability and the potential for steep financial losses in the wake of a catastrophic event. There is a strange trend gaining momentum in the industry today, which is spurred by the severity of recent natural disasters. Insurance markets…

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Consumer group accuses P/C insurance industry of foul play in new report

H. Cutner

The Consumer Federation of America (CFA) and the property/casualty insurance industry are clashing. Late last week, the CFA released a report titled “The Insurance Industry’s Incredible Disappearing Weather Catastrophe Risk.” The report accuses the P/C insurance industry of “overcapitalizing” and making no effort to cover the risks of floods and terrorism. The CFA is urging state and federal insurance regulators to take action and prevent insurers from imposing any more costly rate hikes. Insurers have a different perspective. As a whole, the industry is decrying the report. They are arguing…

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Study suggests that auto insurance may be too expensive for low income drivers.

Nordstrom

A new study from the Consumer Federation of America (CFA), a consumer advocacy group, suggests that auto insurance is too expensive for the poorest Americans to afford. CFA claims that this is to bias seen in the insurance industry despite the fact that insurers cannot base prices solely on a person’s income. In most states, however, insurers can use socio-economic information to price policies, which directly correlates to income. This could be a major problem in states in which auto insurance is mandatory for all drivers. The study shows that,…

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