The 10 Worst Insurance Companies
The insurance industry in America makes $1,000,000,000,000 annually from premiums according to the American Association for Justice. Yes that is a TRILLION dollars. The AAJ compiled a list of the worst insurance companies in the U.S. by examining thousands of records about the companies including court documents, FBI records, and testimony from former insurance employees. Their research resulted in identifying the companies that work against the clients that need them the most and reject claims, deny coverage, and jack up premiums.
The following list is comprised of the 10 WORST insurance companies in America:
1. Allstate The list explains that even the CEO of this company admits that their loyalty does not lay with their customers. CEO Thomas Wilson states that Allstate’s “obligation is to earn a return for our shareholders.” They have been proven through documents they had to make public that while they boast “good hands” to the public they encourage right hooks from their employees against their own policyholders. The AAJ says this of Allstate, “The company essentially uses a combination of lowball offers and hardball litigation.” In order to illustrate just how much money this company is making off their tactics, Wilson received $10,700,000 in compensation in 2007, and his predecessor Edward Liddy got $18,800,000. All of this has earned them the title of the worst insurance company.
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2. Unum This is one of the nation’s most prominent disability insurers and it has established a poor reputation with its insurers. They are renowned for delaying and denying claims set forth to them. The CEO, Thomas Watjen, made $7,300,000 in 2007. The media frequently investigates this company for their continual claim abuse, earning them the number two spot.
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3. AIG Even with his dismissal, former CEO Martin Sullivan is still expected to earn $68,000,000. AIG is the largest insurance company in the world, and somehow they have gotten away with mistreating their clients for years. There have been allegations that the executives of this company strategically try to increase prices when there is a catastrophe. The AAJ reported that, “the company has been labeled the new ‘Enron’ because of charges of multi-billion dollar corporate fraud.”
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4. State Farm This company has committed some truly deplorable acts to avoid paying their clients. After Hurricane Katrina they altered engineering reports about damage from the storm, and they have also forged signatures on earthquake waivers after significant earthquakes. State Farm is the largest property casualty insurance company in the country. Like most insurance companies, they will go to extreme lengths to delay and deny claims. All this while paying their CEO Edward Rust Jr. $11,700,000 in 2007.
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5. Conseco It is truly disturbing to learn of Conseco’s tactics. They mainly serve the elderly with long-term care policies, and they know that delaying is key to not having to pay out money. AAJ reported that, “unfortunately, Conseco uses the deteriorating health of its policy holders to its advantage because the company knows if it waits long enough to pay out claims, its customers will die.” Their CEO, C. James Prieur got $2,600,000 for his role in 2007.
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6. WellPoint CEO Angela Braly made $9,100,000 in 2007 and didn’t even have to be fair to their clients. This company has a long-running history of canceling the policies of chronically ill or pregnant policy holders. They are about the bottom line rather than the wellbeing of their customers.
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7. Farmers Despite customers continually ranking the company low with regards to customer satisfaction, the CEO still was compensated $10,300,000 in 2007. The company offers incentives to their employees if they meet their low payment goals. Both JD Powers & Associates and Consumer Reports have put this company among the worst auto and home insurance companies in the country.
Photo credit: Car Insurance Comparison.
8. UnitedHealth Their tactics not only make the company lots of money, they put patients in danger. According to AAJ, “Physicians report that reimbursement rates are so low and delayed by the company that patient health is compromised.” Stephen Hemsley, the CEO, received $13,200,000 for his ‘work’ in 2007—he has also faced criminal and civil charges. They target their elderly customers with high premiums for seemingly no other reason than because they can.
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9. Torchmark A Southern company for more than 100 years, Torchmark has some very distasteful practices. For one, they have been under scrutiny for charging higher premiums for their minority customer than they charge their Caucasian customers. They also use many subsidiary companies boasting case-specific insurance such as cancer insurance that is met with the same lack of customer care as the mother company.
Photo credit: Bill Dodge.
10. Liberty Mutual While it may not be as good at denying and delaying claims as State Farm and Allstate, Liberty Mutual sought the help of the same consulting firm that the other two companies did to reduce costs. Edmund Kelly, company CEO, made $27,000,000 in 2005—it doesn’t seem that they are having problems keeping money in the company. They have used the tactic of abandoning and refusing renewal to clients in high-risk areas such as those susceptible to hurricanes or floods.
As you can see in the chart above, these companies are by no means lacking the funds necessary to properly compensate their customers. AIG tops the list with $6,200,000,000 in profits in 2007. Only three of these companies made below a billion dollars—that means 70 percent of the worst insurance companies made over a billion dollars yet they did everything they could to keep that money away from their clients.
When you have been injured in an accident you will have to deal with insurance companies a lot. They key to successfully beating them is to hire a New Jersey personal injury attorney who knows the games insurance companies play and knows how to thwart their attempts. The lawyers at Console & Hollawell have 17 years’ experience going up against some of the biggest names in the injury. If you’ve been injured and need legal help, call (866) 778-5500 and get the compensation you deserve.