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Insurers push back on senators over homeowners and auto claims data
The letters seek information on claims, including those closed without payment, and cite concerns about payout rates and links to premium increases.
Senators Elizabeth Warren and Josh Hawley sent letters to some of the largest personal lines insurers in the United States requesting claims data for homeowners and auto policies, with a focus on cases that were closed without payment, according to Insurance Journal.
The senators said they have serious concerns about whether consumers can trust insurers to “hold up their end of the bargain,” and they questioned claims linked to recent reports on denials as premiums have risen and insurers have announced hefty profits.
Insurance Journal reports that the letters followed an August Wall Street Journal analysis of regulatory filings, which the senators cited, that found auto insurance companies did not pay on 45% of closed auto liability and medical claims last year, and a prior Wall Street Journal report that found the five largest homeowners insurers did not pay on 44% of resolved claims.
In response, the National Association of Mutual Insurance Companies, or NAMIC, and others said the Wall Street Journal’s analysis was wrong, according to Insurance Journal.