PIA Comments on FIO in New York Times
PIA National offered a critique of a Federal Insurance Office (FIO) report on auto insurance affordability in a January 26 article in the New York Times. The FIO report analyzed premiums for basic liability automobile coverage in more than 9,000 ZIP codes with high proportions of “underserved” consumers, including minorities and people with low to moderate incomes. It found that rates were unaffordable in 845 of such ZIP codes, or about 9 percent of them. The report did not make specific policy recommendations.
PIA National Senior Vice President Patricia A. Borowski told the Times the study’s measure of affordability didn’t take into account the complex criteria used in setting rates. “Any assessment of auto insurance affordability should account for several other critical factors, such as the differences — most of them significant — that exist among all drivers as to their individual or collective household driving records,” Ms. Borowski said.
In reporting PIA’s comments on the study, the Times also noted that PIA has called for the abolition of the FIO and linked to a press release to that effect on PIA’s website [“PIA: Repeal and Don’t Replace the Federal Insurance Office”].