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According to the Center for Justice & Demcracy recent data shows that the insurance industry will reap record profits in 2006 again, far exceeding the near record 43 billion dollars in profits in 2005. The profits in 2005 broke records despite the economic devastation of Hurrican Katrina on the Gulf Coast. The trend of high profitability applies to all lines of coverage, including automobile insurance where motorists are paying historically high premiums despite lower payouts by insurers.
Nationally, the property and casualty insurance industry, which includes automobile insurance companies, is expected to report record net income of $ 60 Billion in 2006. According to theCenter for Justice & Democracy, consumers continue to suffer with oppressive premiums while the insurance industry rakes in record profits on the backs of its policyholders, even on the heels of the worst national disaster in U.S. history, Hurricane Katrina.