The 10 Worst Insurance coverage Businesses

To recognize the worst insurance coverage companies for buyers, researchers at the American Association for Justice (AAJ) undertook a complete investigation of thousands of court paperwork, SEC and FBI records, state insurance coverage division investigations and complaints, news accounts from across the nation, and the testimony and depositions of former insurance agents and adjusters. The final list includes businesses across a range of distinct insurance fields, which includes home owners and automobile insurers, wellness insurers, existence insurers, and disability insurers.

The report is all about the insurance sector and the difficult strategies they use to boost income. Once this kind of tactic is “deny, delay, defend.” Records showed a distinct pattern of insurance companies refusing to pay out claims, employing “hardball” strategies against policyholders, raising premiums with warrant, hoarding excessive revenue and awarding extravagant salaries.

1. Allstate ranks as the worst insurer for customers, according to a complete investigation of thousands of legal paperwork and fiscal findings.
The rankings show a distinct pattern of insurance coverage business greed amongst 10 companies that refuse to spend just claims, use hardball techniques towards policyholders, reward executives with extravagant salaries and increase premiums even though hoarding excessive income.

“Whilst Allstate publicly touts its ‘good hands’ strategy, it has rather privately instructed its agents to make use of a ‘boxing gloves’ approach against its policyholders,” explained American Association for Justice CEO Jon Haber. “Allstate ducks, bobs and weaves to keep away from paying out claims to increase its revenue.”

Allstate (NYSE: ALL) set the common for insurance coverage business greed and putting revenue above policyholders. Allstate contracted with consulting giant McKinsey & Co. in the mid-1990s to systematically force customers to accept very low ball claims or face its “boxing gloves,” an aggressive method designed to deny claims at any expense. A single Allstate employee reported that supervisors advised agents to lie and blame fires on arson and in turn, were rewarded with portable fridges.

1000’s of court documents, components uncovered from litigation and discovery, testimony, complaints filed with state insurance coverage departments, SEC and FBI records and news accounts were reviewed to compile the rankings and figures.

The rest of the rankings are as follows:

2. Unum (NYSE: UNM) – Unum’s actions are even more shameful taking into consideration the type of insurance coverage it sells: disability. Unum’s conduct was epitomized when it denied the declare of a female with many sclerosis for 3 years, stating her circumstances had been “self-reported,” contrary to doctors’ evaluations. In 2005, Unum agreed to a settlement with insurance coverage commissioners from 48 states over their practices.

3. AIG (NYSE: AIG) The world’s largest insurer, AIG’s slogan was “we know cash.” AIG, described by commentators as “the new Enron,” has engaged in huge corporate fraud and claim abuses. In 2006, the business paid $1.6 billion to settle a host of charges.

4. State Farm is notorious for it is deny and delay tactics and like Allstate, hired McKinsey consultants. State Farm’s correct motives grew to become obvious for the duration of Hurricane Katrina for instance, it employed many engineering corporations until they could deny the claims of the Nguyen loved ones in Mississippi. In April 2007, State Farm agreed to re-evaluate much more than 3,000 Hurricane Katrina claims.

5. Conseco (NYSE: CNO) Conseco sells prolonged-phrase care policies, normally to the elderly. Amongst its egregious behavior, the insurer “created it so hard to make a claim that individuals both died or gave up,” mentioned former Conseco subsidiary agent. Former Conseco executives had been fined when admitted to filing misleading financial statements with regulators.

6. WellPoint (NYSE: WLP) Overall health insurer WellPoint has a prolonged historical past of placing income ahead of policyholders. For instance, California fined a WellPoint subsidiary in March 2007 right after an investigation exposed that the insurer routinely canceled policies of pregnant ladies and chronically sick clients.

7. Swiss-owned Farmers Insurance Group consistently ranks at or near the bottom of homeowner satisfaction surveys and for great purpose. For illustration, Farmers had an incentive plan called “Quest for Gold” that supplied pizza events to its adjusters that met minimal claims payment targets. Like Allstate, it also hired the McKinsey consultants.

8. UnitedHealth (NYSE: UNH) The SEC opened an investigation into former UnitedHealth CEO William McGuire for stock backdating, which eventually led to his ouster in 2006 and returning $620 million in stock gains and retirement compensation. Doctors have also reported that their reimbursements are so low and delayed by the organization that patient wellness is currently being compromised.

9. Torchmark (NYSE: TMK) According to Hoover’s In-Depth Firm Records, Torchmark’s quite origins had been little far more than a scam devised to enrich it founder, Frank Samford. Torchmark has preyed on minimal-income Southern residents and charged minority policyholders more than whites on burial policies.

10. Like Allstate and State Farm, Liberty Mutual hired consulting giant McKinsey to adopt aggressive techniques. Liberty’s methods have been highlighted when a New York couple’s insurance coverage was “nonrenewed” by Liberty, even even though they lived twelve miles from the coast and in no way experienced climate-associated flooding.

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