Consumer Federation of America reports that insurance carriers are inflating premiums for property and casualty coverage

An article in today’s Dallas Morning News highlights a report by the Consumer Federation of America (CFA) which found that the insurance industry systematically inflates premiums for property and casualty insurance coverage. The report, released yesterday, found that while the insurance industry enjoyed record profits in 2007, it overcharges consumers and underpays policyholders claims.

Here is an excerpt from the Dallas Morning News:

Unfortunately, a major reason why insurers have reported record-high profits and low losses in recent years is that they have been methodically overcharging customers, cutting back on coverage, underpaying claims and getting taxpayers to pick up some of the tab for risks the insurers should cover.