Poor Claims Experience: Many policyholders have reported difficulties during the claims process, including delays, lack of communication, and unsatisfactory resolutions

Insensitivity During Critical Times: There have been cases where insurance companies have shown a lack of empathy, such as requesting to speak to deceased policyholders, causing additional distress to grieving families.   

Many individuals and businesses have encountered significant challenges when not partnering with a reliable insurance provider. Here are some common issues:

Claims Handling Issues:

• Delays in Processing: A substantial number of policyholders have reported experiencing delays in the processing of their insurance claims. In 2024, claim handling accounted for 65.2% of closed complaints, with delays making up 22.2% of these issues.

   

• Denial of Valid Claims: There have been instances where valid claims were denied, leaving policyholders without the financial support they expected during critical times. This has led to increased scrutiny of insurers’ claims processes.

   

Rising Premiums:

• Unexpected Rate Hikes: Some insurers have implemented significant rate increases to offset losses from unforeseen events. For example, State Farm sought a 22% increase in home insurance rates in California following substantial wildfire-related payouts.

Poor Customer Service:

• Lack of Responsiveness: Policyholders often face challenges in receiving timely responses from their insurers, leading to frustration and dissatisfaction. This issue has been highlighted in various consumer complaints.