Washington, D.C. – The National Association of Insurance Commissioners’ Auto Insurance Working Group, which is charged with studying “issues relating to low-income households and the auto insurance marketplace” has failed to make any meaningful progress since it was established over four years ago, according to a letter sent to the Association today by Consumer Federation of America (CFA).
“Now, four years and many meetings later, this committee has almost nothing to show for its effort…” CFA’s Director of Insurance, Bob Hunter, wrote. “To say we are disappointed in the lack of progress deeply understates our view. Our view is that your effort on behalf of the citizens whom you require to buy this insurance is shameful. The failure of this Working Group to meaningfully focus on the real life challenges faced by lower-income working families who are forced to buy auto insurance but, in too many cases, are unable to afford it, brings us to the conclusion that the Working Group simply does not have the will to meet its original charge at all.”
The letter can be downloaded here.
CFA noted that the Federal Insurance Office appears to be more committed to researching the issue of auto insurance affordability than the state-focused NAIC, despite the fact that states are the ostensible regulators of the insurance market.
“In the continued absence of the Working Group’s willingness to really press forward on the issue for which it was created, we will continue to work with our state and national partners to encourage FIO’s work in this regard. While we have always hoped that this Working Group would take a lead role in helping to solve the affordability problems in the auto insurance market, our commitment to reforming the market and addressing the weaknesses in the current regulatory system take greater precedent than the level of government from which the data and analyses flow,” Hunter wrote.
“The sole current activity of this Working Group should be developing a robust and granular research program concerning auto insurance affordability for working families and lower-income drivers. If the Working Group decides that it will regain such focus and devote more resources to fulfilling its original charge, we will be pleased to re-engage and offer our assistance.”
CFA has been studying affordability in the auto insurance market for the past several years. A summary of and links to CFA reports on auto insurance is available here.
The National Association of Insurance Commissioners will be meeting in San Diego August 26-29.
Contact: Bob Hunter 207-864-3953; Doug Heller 310-480-4170
The Consumer Federation of America is a national organization of more than 250 nonprofit consumer groups that was founded in 1968 to advance the consumer interest through research, advocacy, and education.