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 Review released a 29 - page report entitled The Ten Worst Insurance Companies In America. The report was the proceeds of a comprehensive investigation of a blizzard of wig 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 warrant cars, homes, disability, health and life.

One thing that the report shows is that Allstate, State Farm and Liberty Retaliated 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 scan the report, go to: http: / / www. authorization. org / docs / tenworstinsurancecompanies. pdf

The list is as follows:

10. Liberty Mutual

Not only has Liberty Common pulled out of Coastal states compatible 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 youthfulness customers higher priced products than neutral customers. Its sales tactics have open 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 late 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 enjoyment surveys conducted by JD Faculty and Consumer Reports. As an example of their profits over people inclination, note that after the 1994 Northridge CA earthquake, Farmers instituted an employee program called Bring Back a Billion. This was an struggle to save the company a billion dollars in claims settlements.

6. Wellpoint

Wellpoint is the nations largest health insurer, tarpaulin over 28 million people. They have been establish to routinely cancel policies on pregnant women and chronically ailing 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 powerful. And that usually affects the senior most. Conseco takes advantage of the record, knowing that if it waits long enough, many policyholders submitting claims will design before their claim is paid.

4. State Farm

The largest property mortality insurer in America, who has a long morale for delaying and unenthusiastic claims. State Farm has recently announced that it has pulled out of the Mississippi and Florida markets quite. In 1999, after a mungo Oklahoma cyclone circumstance, homeowners train a class hoopla litigation against State Farm, alleging that the insurer widely undervalued homes. The jury ruled that State Farm had acted recklessly and with hatred helpful its own policyholders. And dont get me started on how State Farm acted after Katrina.

3. AIG

The worlds largest insurer has had packed financial problems of overdue, with the Congress negotiating a Federal bailout of the insurer in Hopping 2008. But and that, AIG has developed a set 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 nullifying claims. If you want to construe an irritating book about this subject, peruse Insult to Injury, by Glint Bourhis. The author is an attorney that took on UNUM in judiciary. UNUM is generally the target of insurance department and media investigations for their claims bag 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 Gale Katrina, the Louisiana Department of Insurance avowed 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 oral, Our obligation is to earn a return for our shareholders.