In a recent annual Insurance Coaltion meeting last Feb. 18, Missouri Department of Insurance Director and NAIC President John M. Huff addressed the states of Missouri’s auto and health insurance markets. He praised the competitiveness of the former and expressed his concerns over the latter.
"Recent data released by the NAIC ranks Missouri 35th for the cost of auto insurance, which means 34 states have higher premiums," remarked Huff. "Competition directly benefits consumers. It's no coincidence that Missouri has a highly competitive auto insurance market and has some of the lowest rates in the country."
The average annual premiums for full coverage, according to the state department’ data, were only $11 higher in 2014 than in 2003—a 1.5% increase. When adjusted for inflation, premiums noticeably decreased by more than 20%.
Read more: What does full coverage car insurance cover?
Of Missouri’s health insurance market, Huff said that it is one of the most concentrated and least competitive there is.
"While products ranging from automobile insurance to pet insurance are subject to rate filings with the department, health insurance rates are not transparent, not subject to regulatory oversight and are not required to even be filed with the regulator," he said. "The market shares of the largest insurers indicate that the health insurance market is overly concentrated and is dominated by just a few carriers. The largest four insurer groups have a combined market share exceeding 90 percent in the overall market."
Huff also shared his concerns regarding narrow health plans and the lack of rate transparency among the state’s insurers, and mentioned that most of the department’s consumer complaints dealt with health insurance issues.
