PCI opposes repeal of McCarran-Ferguson Act

 

Thursday, Mar 26,2009, 1:40:20 PM   Click:

WASHINGTON-David A. Sampson, president and CEO of Property Casualty Insurers Association of America (PCI), today issued the following statement in response to the introduction of the Insurance Act competition:



"The so-called Competition Act insurance industry is a punitive bill that focuses on a false premise. It uses the current controversy as a bludgeon to punish an entire industry, while the current crisis has nothing to do with the little that exemption allows insurers to share data loss. The McCarran-Ferguson Act does not preclude competition among insurers. In fact, it encourages competition in the market by making small and medium enterprises on an equal footing with much larger competitors, and creates efficiency gains for insurers, which means savings for the insurance and the choice of buyers. These savings are critical to consumers during an economic downturn, and we urge Congress to reject this misguided legislation. "



PCI is composed of over 1,000 member companies, representing the broadest cross-section of insurers of any national trade association. PCI members write over $ 176 billion in annual premium, 39.5 percent of the nation in general insurance businesses. Member companies write 43.8 percent of the market for automobile insurance in the United States, 29.6 percent of homeowners market, 32.8 percent of the commercial property and liability market, and 38.4 per cent of private workers' compensation.