The top three reasons consumers filed formal complaints against their insurance companies in 2008 were delays, denials of claims and unsatisfactory settlement offers.

According to the National Association of Insurance Commissioners (NAIC), premium/insurance rating and policy cancellation issues completed the top five.
The NAIC collected the data through its centralized electronic Complaint Database System (CDS), through which states voluntarily report “closed” complaints.

A total of 195,669 confirmed consumer complaints on insurance companies were reported in 2008 calendar year.

Accident/ health and auto insurance coverages were the target of the most complaints.

Top Five Reasons for Complaints in 2008
Total No. Percentage

Delays 26,844 19.1%

Denial of Claim 25,851 18.4%

Unsatisfactory
Settlement/Offer 20,021 14.2%

Premium and
Rating 6,644 4.7%

Cancellation 5,618 4.0%

Top Five Complaints by Type of Coverage in 2008
Total No. Percentage

Accident and Health 72,351 36.9%

Auto 71,967 36.7%

Homeowners 23,212 11.8%

Life and Annuity 18,594 9.5%

Commercial Multi-Peril 3,741 1.9%

Complaint Trend Reports (2006 – 2009)