Consumer advocate says insurance companies have made profits and awarded executives huge bonuses during pandemic
Lake Charles, LA (KPLC) – The past year has been tough for almost everyone, with the pandemic and natural disasters, but consumer advocates aren’t saying much for insurance companies.
Some consumers have gotten refunds on their auto insurance because vehicles were parked for much of 2020, and insurance companies paid big claims but still seem to have made a lot of money.
It has been widely reported by Economic News and the Consumer Federation of America that insurance executives have received massive premiums in 2020 as auto claims have declined due to the pandemic.
According to the Chicago Sun-Times, State Farm doubled its CEO bonus to $ 18 million and made $ 3.6 billion in profits for the company; while the CEO of Allstate made $ 20 million and had $ 5.6 billion in profits for the company.
Eric Holl of Real Reform Louisiana says the profits are good, but consumers were overcharged.
âThe average Louisiana driver was actually overcharged by $ 180 in 2020. I mean, these companies just made tons of money overcharging people for their car insurance during the pandemic when no one was driving,â Holl said.
Holl says he plans to write to senior insurance companies and suggests they give bonuses to help with hurricane recovery and those still trying to get claims paid.
“We’re going to call on these insurance executives to donate their premiums to help hurricanes and to try to do something within their businesses to make things happen and make people pay for what they own. due, âHoll said.
Insurance spokespersons called did not address executive premiums.
An Allstate spokesperson said they were offering customers shelter in place and had reduced insurance prices across the country, including a 7% reduction in Louisiana.
âAllstate was the first insurer to respond to the decline in auto accidents in March 2020 by offering customers shelter-in-place reimbursements of nearly $ 1 billion, which enabled the insurance industry to provide widespread financial relief to drivers. Since then, we’ve reduced auto insurance prices nationwide, including a 7% reduction in Louisiana, and we’re the largest pay-per-mile insurance provider to save customers money when it comes to car insurance. ‘they drive less,’ said Allstate spokesperson Tanya Robinson.
State Farm says, in part, that auto prices remain below pre-COVID-19 levels, although miles driven and volume of claims have increased.
“We continue to monitor driving behaviors to ensure that the rates we have put in place reflect the expected driving and claim volume, and to minimize the impact on customers as much as possible,” the door said. word of State Farm, Angie Harrier.
Real Reform Louisiana’s full statement, including Holl’s statement, can be found HERE.