Top consumer insurance complaint reasons announced
COLUMBUS — The Ohio Department of Insurance helped more than 436,000 Ohio insurance consumers save or recover $30.4 million in 2017 through its toll-free hotlines, community outreach and counseling, Director Jillian Froment announced.
“One of the most important and fulfilling responsibilities we have is to help consumers understand their policies and to make sure their claims are paid in full per their policy,” Froment said. “Consumers should reach out and contact us anytime they have questions or concerns about their insurance coverage.”
Froment also said the department received 5,874 complaints from consumers related to insurance. Claim denial was the leading complaint reason while health insurance was the top coverage type complaint.
The following information lists Ohio consumer complaints and national data collected by the National Association of Insurance Commissioners (NAIC).
Top Types of Complaint Reasons
1. Claim Handling: Claim Denial – 16.6%
2. Claim Handling: Payment Delay – 11.8%
3. Claim Handling: Unsatisfactory Offer – 6.8%
4. Policyholder Service: Premium Notice Billing – 4%
5. Claim Handling: Adjuster Handling – 3.4%
1. Claim Handling: Delays – 17.6%
2. Claim Handling: Denial of Claim – 15.5%
3. Claim Handling: Unsatisfactory Settlement Offer – 12.8%
4. Policyholder Service: Coverage Question – 4.6%
5. Underwriting: Cancellation – 4.5%
Top Types of Complaints By Coverage
1. Accident and Health – 42.8%
2. Personal Auto – 26.2%
3. Life and Annuity – 12.3%
4. Homeowners and Renters – 11.3%
5. Other Coverage – 7.4%
1. Accident and Health – 41%
2. Personal Auto – 33%
3. Homeowners and Renters – 15.8%
4. Life and Annuity – 7.4%
5. Miscellaneous – 1.9%
The Ohio Department of Insurance is one of the largest consumer protection agencies in the state. Consumers can contact the department to file a complaint against their insurance company or with insurance questions at 1-800-686-1526. Medicare inquiries can be made to 1-800-686-1578. Information is available at www.insurance.ohio.gov.
Ohio to Share Insurance Expertise with National Insurance Organization
COLUMBUS — Director Jillian Froment announced that the Ohio Department of Insurance is serving on 18 National Association of Insurance Commissioners (NAIC) committees and task forces in 2018 to collaborate with other states on critical insurance matters such as innovation and technology, protecting seniors, fighting fraud, appropriate business conduct, and the effective financial condition monitoring of companies. Froment will serve as Vice Chair of the Life Insurance and Annuities Committee.
“The Ohio Department of Insurance has a long history of providing national leadership when it comes to insurance regulation and consumer protection,” Froment said. “We are eager to continue working with our fellow state regulators as the insurance industry grows and adapts in a rapidly changing global economy.”
In addition to serving as Vice Chair of the Life Insurance and Annuities Committee, Ohio is Chair of the Examination Oversight Task Force and Vice Chair of the Life Actuarial Task Force. Recently, Froment was also selected by state insurance regulators to serve as Chair of the Interstate Insurance Product Regulation Commission, also referred to as the Insurance Compact. It works to ensure strong consumer safeguards are in asset protection insurance products through uniform legislation, regulatory oversight, and other means, such as for life insurance, annuities, disability income and long-term care insurance.
“Collectively, these efforts help provide the best foundation for protecting insurance consumers and regulating the insurance marketplace,” added Froment. “With the influence of technology changing the way products are sold, marketed, priced, and the overall experience for consumers, we must be open to innovation while ensuring compliance with the law.”
The NAIC is a national organization of insurance regulators from the 50 states, the District of Columbia and the five U.S. territories whose main objective is to provide support to insurance regulators across the country by promoting competitive markets, improvement of insurance regulations and equitable treatment of insurance consumers. To learn more about the NAIC, visit www.naic.org.
Consumers with insurance questions can contact the Ohio Department of Insurance at 1-800-686-1526 and visit www.insurance.ohio.gov for information.