Florida Personal Injury Lawyers Blog
According to the American Association for Justice (AAJ), insurance companies in America make a whopping one trillion dollars every year from insurance premiums paid by consumers.
That’s a lot of cash. The methods used to keep their pockets full require some questionable tactics, including rejecting valid claims, hiking up premium costs, and denying certain coverages.
The AAJ researched court documents, FBI records, and interviewed former insurance company employees to compile a list of the worst 11 insurance companies in America.
Here they are:
- ALLSTATE – The CEO of the company, Thomas Wilson, has said that the company’s goal is to generate wealth for shareholders. While their ads say that you are in “good hands” with them, the truth is that they encourage their employees to make lowball offers for valid claims and intense litigation strategies to scare off claimants from pursuing what they are rightfully owed. In 2019, Wilson earned more than $16,300,000, but injured claimants walked away with far less than they deserved or nothing at all. The company also earns the title of top worst insurance company due to their ambiguous language in policies that make policyholders believe they have certain coverages, only to find out that they do not when disaster strikes resulting in a denial of their claims.
- UNUM – This is a prominent disability insurance provider in the U.S. notorious for delaying or denying claims brough to them. The CEO, Rick McKenney, made more than $9.7 million in recent years, while claimants were left with benefit denials. Court records show that Unum leaves claimants without the benefits they deserve – the insurance provider denied a man’s benefits and expected him to continue working despite orders from his doctor to stop working. They even denied one of their own employee’s benefits after she was diagnosed with multiple sclerosis. She was forced to seek legal representation after having her claim denied for three years, which caused the company to eventually accept her claim. This further drives the point home that you need to obtain legal counsel immediately in order to get anywhere with insurance companies.
- AIG – The company’s profits keep climbing because they refuse to pay out any claims. The company’s CEO, Brian Duperreault, earned over $19 million in 2019. The AAJ has dubbed this company the new ‘Enron’ due to charges of multi-billion-dollar corporate fraud. This company is notorious for creating unfair obstacles for claimants to pursue benefits for their very valid claims. They are also known for using wrongful tactics in court proceedings.
- STATE FARM – This is the highest-earning insurance company in America and they got that top spot by paying as little as possible for claims. Just like their competitors, State Farm will go to extreme lengths to delay and deny valid claims, but they have no trouble at all paying CEO Michael Tipsord more than $8.5 million or more annually. See a pattern here, folks?
CONSECO (Subsidiaries PENN LIFE and BANKER’S LIFE) – This company and its subsidiaries have all been accused of bad faith insurance practices, such as unethical business practices involving price hikes and false advertising and taking advantage of senior policyholders.- ANTHEM (Formerly known as Wellpoint) – This company covers people under their Blue Cross and Blue Shield plans as well as others. CEO Gail K. Boudreaux made more than $15,400,000 in 2019, while cancelling the policies of chronically ill and pregnant policyholders. Anthem is all about their bottom line, just like every insurance company out there.
- FARMERS – This company brings in millions of dollars annually, despite Consumer Reports and JD Powers & Associates ranking this company as one of the worst auto and home insurance companies in America. They encourage their employees to utilize necessary tactics to meet their low payment guidelines by offering raises, bonuses, and other perks.
- UNITED HEALTH – The outgoing CEO, David Wichmann, earned $18,900,000 in 2019, while the company lowballed reimbursement rates for medical care, forcing patients to find ways to cover their own medical bills. The company’s success is largely due to their partnership with AARP seeking senior policyholders.
- TORCHMARK/GLOBAL LIFE – This company focuses on policies in Alabama, Texas, and other southern states. This insurance provider has fallen under scrutiny for charging higher premiums for their minority customers than their white customers, especially for burial expenses. They have also faced allegations of defrauding their senior customers.
- LIBERTY MUTUAL – This company focuses on delaying claims, denying valid claims, and other shady tactics to keep their pockets fully lined. They are known for abandoning and refusing renewals for policyholders living in areas suspectable to tropical storms and hurricanes, leaving them in need after disaster hits.
