Unhappy Insurance Consumers? NAIC Ranks the Reasons.

What’s bothering insurance consumers? Claims delays, denials and premium issues prompted the majority of formal complaints against U.S. insurers last year, according to the National Association of Insurance Commissioners (NAIC).

After assessing almost 200,000 closed complaints in the national Complaint Database System in 2008, the regulators group ranked policyholders’ top five complaints and the top five policies involved. Complaints about delays led the list, at 19%, followed by claim denials at 18.4%. Rounding out the top five were unsatisfactory settlement offers (14.2%), premium and rating complaints (4.7%) and policy cancellation (4%). The three leading reasons haven’t changed since 2006, NAIC data reveals.

As for the policies involved, frustration with accident and health insurance ranked first, making up 36.9% of complaints. Auto insurance ranked second, at 36.7%, with homeowners following at a distant third, at 11.8%. Issues with life and annuity insurance made up 9.5% of complaints, and problems with commercial multi-peril policies completed the list at 1.9%.

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