Insurance Sales Reached 50-Year Low in 2009
Industry trade group, the Property Casualty Insurers Association of America (PCI), reported on Thursday that U.S. property and casualty insurance sales dropped the most in five decades last year. They reason they gave for the overwhelming drop in sales was the recession and the business cut spending and reduced coverage that occurred as a result.
Policy Sales Drop Largest On Record
According to the association, policy sales for property and casualty insurance (includes auto insurance and homeowners insurance) fell 3.7 percent to $419 billion in 2009. Not only was this the third straight annual decline for the industry, but according to PCI, this was lowest drop the association has seen since it began tracking data in 1959.
From the report, the recession is what caused the most damage to insurance policy sales. With most people focusing on immediate needs (food and shelter), insurance very often was pushed to the bottom of the priority list.
Are You Looking to Get Insured?
According to the Council of Insurance Agents and Brokers, U.S. commercial insurance rates have dropped each quarter since 2004. This means that, while it may not always seem this way, insurance is more affordable than it was six years ago. So if you’re in the market for auto insurance or homeowners insurance, now’s the time to get in on the great rates.
If you already have both types of coverage, there are ways to lower your auto insurance rates or find more affordable homeowners insurance so that you can take advantage of the cheaper insurance rates.