Complaints Decline Again

The National Association of Insurance Commissioners (NAIC) has just released its top insurance complaints for 2007. Given the media’s tendency to focus on the negative, we shouldn’t overlook the fact that consumer complaints against insurers declined for the fourth consecutive year by 3.6 percent to 222,814 in 2007. Delays (16 percent), denial of claims (14.7 percent) and unsatisfactory settlement offers (9.8 percent) were the top three reasons consumers filed formal complaints against their carriers during the course of the year. Policy cancellations (4.6 percent) and premium/insurance rating issues (4.4 percent) rounded out the top five, the regulators noted. Meanwhile, accident & health (36.4 percent), auto (34.4 percent) and homeowners (12.5 percent) were the top three complaints by type of coverage in 2007. It would be remiss of us not to mention that the NAIC collected the data via its centralized electronic Complaint Database System (CDS), through which states voluntarily report “closed† complaints. A closed complaint is one that has been investigated and resolved to the satisfaction of the state or jurisdiction in which it is filed.  

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