The National Association of Insurance Commissioners has released statistics showing consumer insurance complaints decreased for a third year, but the causes for them are relatively unchanged.
According to the NAIC data made public at the group's quarterly spring meeting in New York this week, the top three reasons consumers filed formal complaints against their insurance companies in 2006 were delays, denials of claims and unsatisfactory settlement offers.
Rounding out the top five sources of consumer complaints were policy cancellations and premiums/insurance rating issues.
The NAIC maintains a centralized electronic Complaint Database System, through which states voluntarily report "closed" complaints--those that have been investigated and resolved to the satisfaction of the state or jurisdiction in which they are filed.
First established in 1990, the CDS was significantly expanded in 1998 and now houses more than 2 million complaints.
A total of 190,572 consumer complaints were reported to CDS in 2006, a 7.8 percent decrease from the previous year. This information is based on the submission of data to the NAIC from the state insurance departments. The NAIC does not collect all complaint data from all states.
Last year, delays represented the largest portion of complaints, numbering 41,647 and 22 percent. Claim denials represented the second largest at 35,601 and 19 percent, while an unsatisfactory settlement/offer was third with 26,556 and 14 percent.
In terms of lines, auto represented the largest at 71,302 or 37 percent, and accident and health was 62,954 at 33 percent.
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