October 29, 2002
The Producer Price Index for property and casualty insurance moved up 3.7 percent for the 12 months ended December 2001, due partially to rising prices for private passenger automobile insurance and homeowner’s insurance.
Private passenger automobile insurance advanced 5.9 percent in 2001, with significant increases in California and Florida. In Florida, cases of automobile insurance fraud are currently being investigated as causes for rising premiums.
Prices for homeowner’s insurance rose 5.1 percent in 2001, with large gains in California, Florida, and Texas. The gain in prices resulted from an increase in claims surrounding mold problems that arise in warm climates after water damage.
The price index for the life insurance carriers industry also rose in 2001. The index was up 1.4 percent in 2001, following declines of 0.3 percent and 0.6 percent in 1999 and 2000, respectively.