Jay Feinman, author of Delay, Deny, Defend, discusses the pervasive frustration Americans feel toward insurance companies, driven by claims of unjust practices, including delays, denials, and complicated claim procedures, in an article, Americans’ Rage at Insurers Goes Beyond Health Coverage – The Author of ‘Delay, Deny, Defend’ Points to 3 Reforms that Could Help. 1 The root of the problem lies in systemic practices across the insurance industry. Insurers often prioritize profitability over policyholders’ needs. This manifests in strategies like lowball settlement offers, denial of valid claims, or creating bureaucratic obstacles that discourage policyholders from pursuing rightful claims.

Feinman notes that these issues have been illuminated by high-profile cases in health insurance, but they are also prevalent in other insurance sectors like homeowners, auto, and life insurance. His academic studies have demonstrated that the problem is exacerbated by an imbalance of power and information between insurers and policyholders. Insurers are large corporations with extensive legal and financial resources, while most policyholders lack the expertise to navigate disputes effectively. This disparity often leaves consumers at a disadvantage, struggling to hold insurers accountable when claims are mishandled.

Feinman’s article also examines the broader social consequences of these practices, including economic instability for individuals and families who are denied the financial relief they expected. Feinman argues that insurers have drifted from their foundational purpose of offering protection in times of need to behaving more like profit-driven entities. This shift undermines the social contract between insurers and policyholders, which is built on the premise of mutual trust and good faith.

He offers three reforms that all regulators and lawmakers should consider when addressing this issue:

  1. Enhancing Transparency: Insurers should provide clear, accessible information about policy terms and coverage to help consumers make informed decisions.
  2. Strengthening Regulation: Implementing stricter oversight can ensure fair claim handling and prevent unjust denials or delays.
  3. Improving Accountability: Establishing mechanisms for policyholders to challenge unfair practices can hold insurers responsible for their actions.

Each of these suggested areas of reform is worthy of additional study beyond his article. I was shocked and saddened to read an article suggesting that 41 percent of younger voters approved of the killing of the UnitedHealthcare CEO. 2

I have known Professor Feinman for quite some time and consider him a friend and colleague. I interviewed him at a First Pary Claims Conference in 2010 about his then newly published book, noted in Jay Feinman Interview at First Party Claims Conference.

To get a little better insight into Feinman, here is a link to that interview.

Thought For The Day

“Profit is not the purpose of a business, but rather the consequence of good business practices.”
—Peter Drucker

1 Jay Feinman, Americans’ Rage at Insurers Goes Beyond Health Coverage – The Author of ‘Delay, Deny, Defend’ Points to 3 Reforms that Could Help, The Conversation (Jan. 6, 2025).
2 Filip Timotija, Shock poll: 41 percent of young voters find killing of UnitedHealthcare CEO acceptable, The Hill (Dec. 17, 2024).