AIA, PCI Send Joint Letter Regarding Federal Tax Changes, Rate Filings

DES PLAINES, Illinois, Jan. 31 -- The Property Casualty Insurers Association of America issued the following news release:

The American Insurance Association (AIA) and the Property Casualty Insurers Association of America (PCI) issued a letter to state insurance commissioners today responding to the Consumer Federation of America (CFA) and the Center for Economic Justice's (CEJ) oversimplified and overstated claims about the federal Tax Cut and Jobs Act.

The AIA/PCI letter highlights that the property and casualty insurance industry's outstanding track record of price competitiveness means that any bottom-line benefits of the tax bill will ultimately be felt by consumers in the marketplace. However, the impact of the new tax law will differ significantly from insurer to insurer, from line of business to line of business and from state to state. Therefore, AIA and PCI are urging state insurance regulators to carefully consider the complexity of the tax law and the different impact across products and lines of business.

A copy of the AIA/PCI letter is attached. (http://www.pciaa.net/pciwebsite/common/page/attachment/74068)

PCI promotes and protects the viability of a competitive private insurance market for the benefit of consumers and insurers. PCI is composed of nearly 1,000 member companies, representing the broadest cross section of insurers of any national trade association. PCI members write $220 billion in annual premium, 37 percent of the nation's property casualty insurance. Member companies write 44 percent of the U.S. automobile insurance market, 30 percent of the homeowners market, 35 percent of the commercial property and liability market and 37 percent of the private workers compensation market.