On the heels of the Supreme Court’s ruling that upheld the Affordable Care Act, a new report from the Insurance Information Institute (II) offers insight into how the industry is working with regulators and insurers.
The institute analyzed data from nearly 400 insurers and their state affiliates and found that the federal government pays about $3.4 billion per year in premiums, including about $1.2 billion per month for auto insurance.
But the study also notes that insurance premiums vary widely depending on the type of auto, with a $1,000 deductible for new vehicles.
For example, an average $1 million auto policy would cover about 10 percent of a driver’s household income, according to II.
The study also noted that most insurers use an array of insurance strategies for their customers, from a “pilot” policy to an “extended” policy.
But it did not provide specific examples.
For instance, the II study also found that insurers that use a “long-term” plan to pay out at least $5,000 per year for life coverage typically do not require a deductible.
This is likely because the insurer can charge lower premiums than those that require a premium-driven coverage like a policy that is purchased and renewed over time.
The II report is based on data from insurers and insurance information providers.
The report’s authors are John Lippincott, associate director of insurance analysis at the II, and Mark D. Cohen, associate professor of insurance at Vanderbilt University’s School of Management.