NEW YORK, Dec. 5 -- Rating errors for auto insurance policies resulted in the loss of $16.1 billion in premium revenues in 2007, an industry research group said Friday.
Quality Planning Corp., which tracks information for the insurance industry, said the "auto premium leakage" declined from the $16.6 billion lost in 2006. However, insurers' revenue losses still came to almost 10 percent of the $162 billion in auto premium revenues for the year, the Insurance Journal reported Friday.
"The year 2007 saw the first decrease in auto premium leakage since Quality Planning began issuing this industry report five years ago," said Raj Bhat, president of Quality Planning.