Record profits, broken promises

Series tells the story of insurance company doublespeak

Our four-part series on insurance companies exposes the doublespeak industry executives use to justify skyrocketing premiums and dropped coverage while boasting about record profits. Meanwhile, millions of Americans are discovering the hard way that insurance companies restrict or deny coverage when they need it most.

A recent CBS 60 Minutes report on insurance companies that shortchanged Florida homeowners after Hurricane Ian reminded us again of this disturbing nationwide trend. Insurance company whistleblowers revealed that the company routinely slashed damage estimates by hundreds of thousands of dollars, paying homeowners a fraction of what they were owed. It’s a shocking story made all the more alarming as Florida recovers from new weather catastrophes, Hurricane Helene and Milton.

For those who may have missed our series or would like to read and bookmark the articles again, here is a roundup of Record Profits, Broken Promises:

Part 1: Insurance Companies Rake in Record Profits But Tell Iowa Homeowners a Different Story

Iowans are seeing rate increases of 50% or more on their home insurance or are being dropped altogether after an increasing number of severe weather events. Insurance executives say they have no choice as losses pile up, but in fact, the industry is seeing record profits. Read more.

Part 2: Car Insurance Premiums Skyrocket While Insurance Companies Cover Just Half of Crash Costs

Car insurance rates are up nearly 21% across the country. Excuses offered by the industry include the cost of car repairs, an increase in severe car accidents, and their own policyholders who take them to court when they refuse to pay insurance claims. They fail to mention that they raked in historic profits in 2023 while only paying a little more than half of the economic costs of motor vehicle crashes. Read more.

Part 3: Raising Minimums for Auto Insurance Would Help Close Coverage Gap, Protect Injury Victims

Based on data from the National Highway Traffic Safety Administration, insurance companies pay only 54% of the $340 billion in economic costs associated with motor vehicle crashes each year. Changing severely inadequate and outdated minimum insurance laws would help crash victims who otherwise would be left high and dry for their losses. Read more.

Part 4: The Case for Raising Auto Insurance Minimums

The minimum insurance needed to drive a car in Iowa was set back in 1983 and hasn’t changed since. That means if you are injured in a car crash today, you must cover the costs of medical care, vehicle repair, and property damage with 1983 dollars. Raising the minimums calls for a simple policy change by lawmakers and would not increase premiums or the number of people driving without insurance, as some fear. Read more.

As we’ve said many times during this series, we want insurance companies to succeed and provide the protections we all need when the unexpected happens. However, we also deserve the truth when insurance companies tell policyholders one story while engaging in cynical business practices that put profits above everything else

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