Worst Insurance Companies: The Top Ten Worst Insurance Companies In America

Worst Insurance Companies: The Top Ten Worst Insurance Companies In America

In 2008, the American Association for Right released a 29 - page report entitled The Ten Worst Insurance Companies In America. The report was the end of a comprehensive investigation of a blizzard of expert documents, FBI records, state insurance department complaints and investigations, news stories from around the nation, and testimony and depositions from former insurance agents and adjusters. The final list includes companies that ok cars, homes, disability, health and life.

One thing that the report shows is that Allstate, State Farm and Liberty Reciprocal all hired famous management consultant McKinsey and Company to study how they could be more profitable. McKinsey came back with a strategy known as The Three Ds... Deny, Delay and Defend. All three companies have used this strategy aggressively to boost profits for their shareholders.

To read the report, go to: http: / / www. judicature. org / docs / tenworstinsurancecompanies. pdf

The list is as follows:

10. Liberty Mutual

Not only has Liberty Returned pulled out of Coastal states congenerous Florida and Louisiana, but also Massachusetts, Rhode Island, Connecticut, Maryland and big parts of New York.

9. Torchmark

A variety of company subsidiaries sell burial insurance, cancer insurance, and life insurance. The company has been accused of selling juvenescence customers higher priced products than bloodless customers. Its sales tactics have involved frequent lawsuits from regulators and policyholders.

8. United Health

This health insurer has a reputation for health care reimbursement rates that are so low and so overdue that doctors report patient health is at risk.

7. Farmers

Owned by Swiss insurance giant Zurich Insurance, Farmers is consistently near the bottom of homeowners and auto pleasure surveys conducted by JD Bent and Consumer Reports. As an example of their profits over people sensibility, note that after the 1994 Northridge CA earthquake, Farmers instituted an employee program called Bring Back a Billion. This was an battle to save the company a billion dollars in claims settlements.

6. Wellpoint

Wellpoint is the nations largest health insurer, covering over 28 million people. They have been institute to routinely cancel policies on pregnant women and chronically unwell patients. In 2007, the California Department of Insurance assessed a $12. 6 million fine against Wellpoint for serious violations in their claims procedures. Wellpoint was also sued by 800, 000 doctors for underpaying claims.

5. Conseco

Long - term care insurance is Consecos blustering. And that repeatedly affects the old most. Conseco takes advantage of the register, knowing that if it waits long enough, many policyholders submitting claims will contour before their claim is paid.

4. State Farm

The largest property eternal rest insurer in America, who has a long shape for delaying and invalidating claims. State Farm has recently announced that it has pulled out of the Mississippi and Florida markets totally. In 1999, after a titanic Oklahoma tornado fact, homeowners echelon a class alertness proceedings against State Farm, alleging that the insurer widely undervalued homes. The jury ruled that State Farm had acted recklessly and with malice benign its own policyholders. And dont get me started on how State Farm acted after Katrina.

3. AIG

The worlds largest insurer has had hefty financial problems of late, with the Congress negotiating a Federal bailout of the insurer in Hop 2008. But further that, AIG has developed a ethos over the years as a company that fights claims aggressively.

2. UNUM

This Chattanooga, TN based company is one of the nations leaders in disability insurance. UNUM has a long reputation for delaying and pessimistic claims. If you want to peruse an vexing book about this subject, interpret Insult to Injury, by Gleam Bourhis. The author is an attorney that took on UNUM in beak. UNUM is much the target of insurance department and media investigations for their claims usability tactics.

And... drumroll please... the AAJ choice for number one worst insurance company in America is....

1. ALLSTATE

The AAJ stated that the good hands of Allstate should be shown inside boxing gloves. According to the National Association of Insurance Commissioners ( NAIC ), complaints filed against Allstate were greater in number than most all of its major competitors. After Cyclone Katrina, the Louisiana Department of Insurance known over 1, 200 complaints against Allstate, which is more than any other company. State Farm had over 700 complaints, and State Farm has the biggest share of the homeowners insurance market in Louisiana. Allstate embraces the McKinsey philosophy, Delay, Deny and Defend.

Allstates CEO Thomas Wilson summed up the strategies of all the companies when he spoken, Our obligation is to earn a return for our shareholders.