The Ten Worst Insurance Companies In America
Allstate-The Worst Insurance Company in America.
One company stood out above all others. Allstate's concerted efforts to put profits over policyholders has earned its place as the worst insurance company in America. According the CEO Thomas Wilson, Allstate's mission is clear" "our obligation is to earn a return for our shareholders." Unfortunately, that dedication to shareholders has come at the expense of policyholders. The company that puplicly touts its "good hands" approach privately instructs agents to employ a "boxing gloves" strategy againts its own policyholders. In the words of former Allstate adjuster Jo Ann Katzman, "We were told to lie by our supervisors. It's tough to look at people and know you're lying."
The Insurance Industry’s Wealth
- The insurance industry has so much excess cash it may spark a downturn in the industry. According to analysts at Standards & Poor's, U.S. insurers are sitting on too much capital, and will likely endure at least three years of negative performance as a result.
- The U.S insurance industry takes in over $1 trillion in premiums annually. It has $3.8 trillion in assets, more that the GDPs of all but two countries in the world (US and Japan).
- Over the last 10 years, the property/casualty insurance industry has enjoyed average profits of over $30 billion a year. The life an health side of the insurance industry has averaged another $30 billion.
- The CEOs of the top 10 property/casualty firms earned an average $8.0 million in 2007. The CEOs of the top 10 life and health insurance companies earned even more- an average $9.1 million. And for the entire industry, the median insurance CEO's cash compensation still leads all industries at $1.6 million per year.
Profits Over Policyholders
But some companies have discovered that they can make more money by simply paying out less. As a senior executeve at the National Association of Insurance Commissioners (NAIC), the group representing those who are supposed to oversee the industry, said "The bottom line is that insurance companies make money when they don't pay claims."
The name of the game is deny, delay, defend- do anything, in fact, to avoid paying claims. For companies like Allstate, there are corporate training manuals explaining how to avoid payments, portable fridges awarded to adjusters who deny the most claims, and pizza for parties to shred documents.
-American Association for Justice
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