Consumers Believe Competition Would Lower Insurance Premiums
Washington DC, March 5, 2008 ––The majority of consumers would like to see competition between federally-regulated and state-regulated insurance companies and believe that having more competition would reduce consumer prices, according to consumer opinion research. The findings, based on a survey of head of households who subscribe to auto and/or homeowners insurance, were part of the American Consumer Institute’s 2008 Consumer Pulse Survey. The key results of the survey are:
- Consumers were asked if they would support or oppose increased insurance competition and 66% responded in support, while 26% were opposed and the balance of consumers did not know.
- When asked whether they would support or oppose giving consumers the option to choose between federally-regulated (interstate) and state-regulated insurance companies, 76% were in favor of more choice, while 14% were not and the balance of consumers did not know.
- Responding to whether increasing insurance competition would increase or decrease insurance prices, 73% of consumers said that more competition would decrease prices, while 15% believed it would raise prices, 7% thought it would do neither and the balance of consumers did not know.
“Consumers clearly want more choice because they believe that it will lead lower premiums, and that make the market more responsive to their needs,” states Steve Pociask, president of the American Consumer Institute. These survey results have an accuracy of plus or minus 3.3% in the worst case.