P/C Insurance Pricing Remains Competitive
Commercial automobile insurance saw an average two percent price increase
in April, while commercial property and employment practices liability
insurance saw one percent increases, according to MarketScout. Most average
commercial property and casualty insurance prices were flat in April. The
largest accounts reported year-to-year decreases of two percent, and the
smallest accounts saw rates rise by one percent.
GEICO, Allstate to Raise Auto Insurance Rates
announced last week that it would raise auto
insurance rates after it reported that its underwriting profit for the first
quarter of 2015 was $160 million, a decline of $193 million compared to the
first quarter of 2014. The company said it experienced increases in
claims frequencies and severities in several of its major coverages
and its loss ratio increased to 80.1, compared to 75.8 in 2014.
Allstate joined GEICO in announcing auto rate increases after margins
worsened. First-quarter underwriting income for Allstate auto fell
48 percent to $144 million, the insurer said on a spreadsheet posted on
its website, even though its first-quarter profit rose 13 percent.
PIA Says: "Ax the Cadillac Tax!"
has endorsed two bills in Congress that
would both fix a major flaw in the Affordable Care Act (ACA) by
repealing an excise tax on certain employer-sponsored health plans.
The 40 percent excise tax on so-called "overly generous" employer
plans is set to take effect in 2018. Commonly referred to as the
"Cadillac Tax," it will have a much broader effect than Congress
intended and is likely to have a disparate impact on certain groups.
"The 'Cadillac Tax' is a ticking bomb that is set to explode in 2018
and deny health coverage to millions of middle-class Americans," said
PIA National Executive Vice President & CEO Mike Becker. "It has the
potential to create more market disruption than we've seen since the
inception of the ACA, all to benefit government programs."
PIA has endorsed two similar pieces of legislation: the "Ax the
Tax on Middle Class Americans' Health Plans Act" (H.R. 879), introduced
by Congressman Frank Guinta (R-NH); and H.R. 2050, a bill to repeal
the excise tax, introduced by Rep. Joe Courtney (D-CT). In addition,
comments to the Internal Revenue
Service (IRS) on May 4 seeking guidance on how the tax will be
calculated and offering suggestions to help stem unintended
consequences of the law.