Consumer groups reporting huge profits for insurance companies

(11/06/2023) - Two national consumer groups this week have reported rising profits for insurance companies including a major medical malpractice insurer. The Consumer Federation of America, a non-profit association that advances consumer interests, released an analysis of recent trends showing that rate increases in commercial property insurance have slowed to a standstill and in some cases are starting to drop. CFA also noted that profits for commercial insurers have increased very sharply, signaling possible rate gouging of customers. At the same time, the Center for Justice & Democracy reported that American International Group (AIG), one of the world’s biggest insurance companies and a major medical malpractice insurer, “is now dripping in profits due to soaring premiums and reduced claims.” According to the Center for Justice & Democracy, third-quarter reports show AIG net income at $2.34 billion over the most recent three-month period, representing a 26.9 increase in the same period last year.

Consumer Federation press release

Center for Justice & Democracy press release

Related Files

Center for Justice Nov 4 release
Consumer Federation Nov 3 Release