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Americans for Insurance Reform released a new study earlier this week showing how the insurance industry periodically manufactures crises to boost profits. The study, titled “Repeat Offenders: How The Insurance Industry Manufactures Crises And Harms America” shows that property and casualty insurers work together to create periods of crisis, known as “hard markets”. The industry often uses these periods of manufactured crisis to have their lobbyists argue for “tort reform”, feigning ignorance of the fact that the crisis and the resulting rate hikes were created by collusion amongst the insurers themselves. The study’s authors say that the cycles of boom and bust “are national in scope and occur in every state irrespective of a state’s ‘tort’ law. Because the legal system is not responsible for creating hard markets, enactment of so-called ‘tort reform’ has done nothing to prevent them”. The report warns that in recent months the insurance has been trying to create a new hard insurance market. The study has been sent to all 50 state insurance commissioners and the newly formed Federal Insurance Office, urging stronger regulation of the insurance industry and a repeal of the anti-trust exemption granted under the McCarran-Ferguson Act.