Can you believe it! Every day insurance companies “poor-mouth” it. Yet facts show, as hurricane season approaches, the insurance industry is "riding a wave of tidy profits." Industry profits hit a record high in 2005, despite storm damage across the Gulf South.
Analysts say its "good times in the property-casualty industry." Since 1992, insurers insulated themselves with increased prices, new deductibles, scaled-back high-risk coverage and shifting risk to other insurers. "The net result: Catastrophes don't hurt sellers of homeowners' insurance as much as they used to." An analyst says consumers are bearing the cost of higher insurance while the overall equation has shifted in favor of insurers.
Associated Press, New Orleans CityBusiness, 05/11/2006