The American Association for Justice conducted a study and concluded that Allstate Insurance is the worst insurer in America. (Click here to see a complete copy of the study) The report speaks for itself, but it truly details some outrageous behavior and a claims culture that clearly favors Allstate’s pocketbook over beneficiaries.
I am often asked to comment about which insurance company should claim this infamous award. The answer to that question is very, very difficult. I often find that a rogue adjuster can leave a trail of bad faith cases ripe with examples of disgusting behavior. Often, an entire claims office or region of an insurer has a claims culture dictated by an overzealous company person trying to prove management value by underpaying claims.
Sometimes, directives from the very highest levels of insurance company management require otherwise honest and good people to take unreasonable positions and attitudes regarding payment of claims. I hope the senior management of the insurers making this list will not get their public relation spin doctors on overdrive, but instead reflect on the examples cited in the study. They should be doing everything possible to correct the problems they are causing rather than react with the all too often smear campaign by their lobbyists, public relations departments, and trade associations.
Good insurance companies should not tolerate this type of behavior either. Companies gaining an economic advantage through unethical claims conduct should not be allowed to participate in the market. Everybody has to play fairly and honestly by the rules or simply not be allowed in the game.
