At a recent CNN Town Hall, President Biden commented on the cost of homeowners' and automobile insurance. In response, PIA would like to contextualize the president's remarks with facts about the way auto and homeowners' insurance policies are priced and the role of states and professional independent insurance agents in that process.

Insurance companies base their prices on, among other considerations, the risks posed by individual consumers, and the evaluation of risk is based on numerous factors. Race is not used as a factor in pricing because every state prohibits that sort of racial discrimination. Those existing state laws make it illegal for companies to price products in racially discriminatory ways. In every state in America, insurers are prohibited from pricing their products based on race.

The complete statement is online at:

https://pianet.com/news/insurance-news/2021/pia-position-on-auto-and-homeowners2019-insurance

According to a report from Verisk Analytics Inc. and the American Property Casualty Insurance Association, net income for the U.S. property and casualty insurance industry dropped by 27.5% to $35.1 billion over the first nine month of 2020. The report also notes that the industry's combined ratio worsened to 98.8% as of Sept. 30, 2020. In the first nine months of 2019, the industry's combined ratio was 97.8%. The decline in combined ratio comes as net underwriting gains fell to $300 million from $5.4 billion in 2019.

Meanwhile, net written premium growth accelerated to 2.9% for the 2020 period, up from 2.7% for the same period in 2019. The deterioration in underwriting results was due in part to increases in catastrophe-related losses, which more than doubled to $47.1 billion for the 2020 period. "Insurers in the third quarter of 2020 continued to be hammered by COVID-19, natural catastrophes and civil unrest losses," APCIA's Robert Go|rdon said.

The National Association of Insurance Commissioners (NAIC) has announced strategic priorities for 2021. NAIC members decide on the priorities and discuss potential workplans annually following the announcement of the organization’s Officer and Committee appointments.

"This year marks 150 years of NAIC members being unified in their commitment to protect consumers and ensure fair, competitive, and healthy markets," said NAIC President and Florida Insurance Commissioner, David Altmaier. "In 2021, we will continue this tradition and find ways to advance solutions that help foster a robust and responsive insurance sector that provides consumers with safe and reliable insurance products."

Insurance Commissioner Jim Donelon announced today his appointments of James "David" Caldwell, Jr. as Executive Counsel and Rebecca Mowbray as Deputy Commissioner of Public Affairs.

"The Louisiana Department of Insurance is lucky to have recruited someone of David's caliber and experience to the Executive Counsel position," said Donelon. "His work in both the public and private sectors as a prosecutor and as a civil litigator gives him a broad base of experience, and his extensive background in criminal investigations will be invaluable to the department as we continue our work in protecting consumers from scam artists."

Caldwell served as Deputy Director of the Criminal Division of the Louisiana Department of Justice from 2008 to 2016. In that role, he was responsible for the daily operations within the Criminal Division, which included oversight of the Medicaid Fraud, Insurance Fraud and Investigations divisions, and drafted legislation on behalf of the department. While at the justice department, he created the Public Corruption and Special Prosecutions Division in 2008 to address the need for focused state enforcement of public corruption and complex white-collar crimes in the state and led the group as its director. Most recently, he has worked in private practice and as Field Counsel for Liberty Mutual Insurance Company in Texas.

Caldwell earned a Juris Doctorate from Tulane Law School and studied English and Russian at Louisiana State University.

Mowbray covered property insurance issues and rebuilding for the Times-Picayune after Hurricane Katrina. She worked as a journalist for more than 15 years at the Times-Picayune, the Houston Chronicle, and other publications. Most recently, she served as Assistant Inspector General for Inspections and Evaluations at the City of New Orleans Office of Inspector General.

"Rebecca has really been in the trenches of insurance issues since she covered the aftermath of Hurricane Katrina," said Commissioner Donelon. "Through her work in journalism, she has honed the ability to make complicated subjects relatable to general audiences and has a keen grasp on what information is important to consumers looking for assistance. I am happy to welcome her to the team."

Mowbray earned a master's degree in journalism at Northwestern University and a master's in international relations at Tufts University. She studied political science and English at Skidmore College.