III: Insurers have paid billions of dollars in claims
Data from the Insurance Information Institute finds that business, auto and homeowners insurance companies paid out more than $400 billion in insurance claims from 1990 through 2011, remaining financially stable despite severe weather events.
The group said that the amount of claims paid as a result of natural disasters has grown by a factor of seven over the past several decades, with hurricanes, tropical storms and tornadoes causing severe damage.
In addition, specific events such as the tornado which hit Joplin, Missouri, last year created damages of more than $2 billion alone.
"The premium an auto, home or business insurer charges must be commensurate with the risk they are assuming on behalf of the policyholder," said Dr. Robert Hartwig, an economist and president of the Insurance Information Institute. "Insurers remained solvent, met their financial commitments, and some even grew their businesses during one of the most challenging economic downturns since the Great Depression."
The statement counters a previous report from the Consumer Federation of America. The group lashed out at insurance companies for requesting rate increases in several states, calling the higher premiums "an unwarranted financial burden" that some would have difficulty with.
Related Home Insurance Articles:
- Homes destroyed by Nevada wildfire May 23, 2012
- Researchers hope to better understand tornado damage May 22, 2012
- Total costs from Minneapolis tornado reach $80 million May 21, 2012
- Analysis shows more than $2B of insurance claims from Joplin tornado May 18, 2012
- Recovery continues for Michigan tornado victims May 17, 2012
