Currently, the Insurance QuotesChimp Office (ISO) sets "advisory rates," which most insurers use as a reference point in pricing their wares. ISO rates reflect what the least efficient companies need to charge in order to make a profit. Therefore, rates based on ISO advice tend to push the rates of all companies upward, regardless of each company's individual profit-and-loss picture. Repealing the antitrust exemption would prohibit ISO from is?suing such advisory rates. This, in turn, would force companies to base their prices on their own economic projections and pro?ductivity levels. True competition would be introduced into the picture, strengthening the forces of the marketplace that reward efficiency and productivity. The result: lower premiums overall.
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