Insurer Practices/Profits

CFA Reiterates Need for Rate Relief for Consumers in Wake of Large Corporate Tax Cut

In a letter to state Insurance Commissioners, CFA responds to insurers and their trade groups who have begun lobbying to prevent Departments of Insurance from taking actions that respond to excessive rates in the wake of the change in the federal corporate tax rate. While it is true that the impact, as insurers are quick to point out, will vary from company to company and line by line, it is also true that the variation is only in degree, not in direction. Except for insurers that were using inadequate rates in the past, rates under the new tax regime should be lower across the industry.  CFA urges Commissioners to take action to ensure consumers see the rate reductions that should come with the tax cuts.

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