To the Editor:

How, after the Insurance Information Institute last week reported record insurance industry profits of $63.7 billion for 2006, do insurance companies continue to abandon Gulf Coast policyholders?

The answer – because insurance CEOs look at natural disasters like hurricanes Katrina, Rita and Wilma, which were the No. 1, No. 3 and No. 7 costliest hurricanes in U.S. history, as revenue generators.

The Consumer Federation of America said insurers used these hurricanes to justify “overpricing insurance, underpaying claims and reaping unjustified profits,” all at the expense of policyholders.

While 2006 was a banner year for insurance companies, for hundreds of thousands of policyholders it was a year of terrible tragedy. And, for those “lucky” enough to hold on to their policies, sky-high rate increases are being imposed despite the fact that insurance CEO’s wallets have never been fatter.

Allstate just announced Mississippi homeowners will be hit with a 29 percent increase this year.

What’s next for Gulf Coast homeowners – haven’t they suffered enough?

Bill Chappell

Montgomery