A new industry report by LendingTree and ValuePenguin has determined that most customers have issues involving the way their claims are handled – and some insurance companies are better at processing claims than others.
The report found that home and auto insurance customers complain most frequently about how their claims are handled. Across all insurers, the report noted that 68% of all customer complaints were related to claims handling.
The report broke down claims handling complaints into four types – unsatisfactory settlement/offers, delays, denial of claim, and adjuster handling.
Among claims handling-related customer complaints, the report said that the single biggest type was about unsatisfactory settlement offers. For the year 2019, there were 890 instances of such complaints, LendingTree and ValuePenguin found. The second-most common issue was claim delays, with 834 complaints in 2019. Denial of claim and adjuster handling complaints followed at 550 and 313, respectively.
Per state, the most common issues raised by insurance customers varied. While 100% of complaints in Vermont were about claims, 79% of the complaints lodged in Maryland were related to policy cost and cancellations. California was the state with the most home and auto insurance complaints, recording 772 complaints in 2019 – most of which were related to unsatisfactory settlements or offers.
“It’s no surprise that claim issues got the most attention among consumers. Handling one of these covered events, such as a car accident or theft in the home, is stressful enough,” the report noted. “But the promise of getting fair and prompt reimbursem*nt after a loss is the reason you buy insurance in the first place.”
LendingTree and ValuePenguin’s report also revealed the most common insurance-related complaints among the top 10 leading US insurers. They were:
Among this top 10 group, Nationwide had a complaint index of just 0.43 for car insurance – meaning its customers are only 43% as likely to file a complaint as they would at another insurer. Meanwhile, Chubb led the way for home insurance with a complaint index of just 0.15.
On the flipside, among those that didn’t fare well, Liberty Mutual car insurance customers were reported as 96% as likely to file a complaint as the typical insurance customer – so still beating the national average. For home insurance, Allstate had a complaint index of 1.2 meaning it performed worse than the national average.
Among claims handling-related customer complaints, the report said that the single biggest type was about unsatisfactory settlement offers. For the year 2019, there were 890 instances of such complaints, LendingTree and ValuePenguin found. The second-most common issue was claim delays, with 834 complaints in 2019.
Overall, 70.9% of closed insurance complaints in 2023 have involved claim handling. Accident and health insurance providers have received the biggest share of complaints in 2023.
Amica, AIG and Erie Insurance are the best homeowners insurance companies, according to J.D. Power's 2024 Property Claims Satisfaction Study. Erie Insurance ranked highest overall in customer satisfaction with a score of 856/1,000, followed by Amica with a score of 844 in the most recent U.S. Home Insurance Study.
In terms of number of policies settled during 2022-23, Max Life Insurance has the highest claim settlement ratio of 99.51%. With a 99.39% claim settlement ratio, HDFC Life Insurance came second on the list. Aegon Life Insurance bagged the third position with a 99.37% claim settlement ratio.
Fraud: In rare cases, Progressive may suspect fraud or misrepresentation related to your claim and deny coverage on that basis. Lack of coverage: They could deny the claim if it is determined you do not actually have coverage for the type of loss or damage involved.
The insurance company is actually selling protection to the consumer against loss from the risks I list. Interviewer: Does this mean that one insurance policy generally covers all possible loss- es? Insurance Policy: Oh no. Each policy states specifically which losses it covers.
Executive Life Insurance Company is regarded to be the biggest bankruptcy of an insurance company in the United States in the course of recent years. Based in California, the life company had to file for bankruptcy in 1991 following disastrous investments in junk bonds.
Introduction: My name is Patricia Veum II, I am a vast, combative, smiling, famous, inexpensive, zealous, sparkling person who loves writing and wants to share my knowledge and understanding with you.
We notice you're using an ad blocker
Without advertising income, we can't keep making this site awesome for you.
