What Does Economic Downturn in Insurance Industry Mean for Consumers?

The downturn in the economy has taken its toll on the insurance industry. MPB’s Cari Gervin has a closer look at what that means for consumers.

At Mississippi State University’s annual Insurance Day on Thursday, the position of the insurance industry in the global market was one of the things everyone was talking about.

Mike Chaney is the state Commissioner of Insurance. He said the insurance issues facing the Gulf Coast are the number one priority in the state.

“And the second thing I think is extremely important for the state is to have some stability worldwide in the market and especially in the U.S. That won’t come anytime soon. It’s going to take a while for us to recoup and be stable in the market. Stability and predictability are keys to affordable insurance in this country and this state."

With the sour economy, many people may just be happy that they can pay their insurance bills, so they aren’t thinking about looking for bargains. But Martin Roberts of Associated Insurance Administrators says that could be a mistake.

“So right now, the automobile market is the best it’s been in many, many years for the consumer.”

Erik Case is a marketing representative with Dixie Specialty Insurance in Jackson. He says that the best thing consumers can do is:

“Read their insurance policy! And make sure that they know what’s on their insurance policy. Always be aware that a homeowner policy does not provide flood insurance. Just read your policy.”

Case says that if you have questions about anything, no matter how small, ask your agent about it – or ask another, independent agent what the small print means.

For MPB News, I’m Cari Gervin.