Elizabeth Warren, Josh Hawley Launch Probe Into Insurance Giants Over Claims That End With $0 Payouts — State Farm, Allstate Face Tough Questions: Report

Sen. Elizabeth Warren (D-Mass.) and Sen. Josh Hawley (R-Mo.) are reportedly seeking answers from major home and auto insurers after analysis showed consumers increasingly face claims that close without receiving any payment. The senators requested data explaining why more claims are ending without payments. The inquiry covers both formally denied claims and other claims closed without payouts, reported the Wall Street Journal. The letters ask State Farm, Allstate Corp. (NYSE:ALL) and other insurers to disclose closed-claim data, including denials. The companies must also explain whether employee, contractor or adjuster compensation depends on claim decisions or payouts. The senators said the findings raise “serious questions about whether consumers can trust their insurance companies” to honor their obligations. They also criticized “increasingly aggressive” claims-handling practices, which also include tactics to delay payments, as insurers chase stronger profits. State Farm and Allstate Corp. did not immediately respond to Benzinga’s request for comments. Read Also: Elizabeth Warren Warns '5 Million People Have Already Lost Food Assistance' as SNAP Changes Take Effect Under Trump’s Law Scrutiny Grows as Insurer Profits Surge The inquiry expands Warren’s broader scrutiny of concentrated influence in insurance and healthcare. In August, she criticized vertical integration involving UnitedHealth Group Inc. (NYSE:UNH), arguing that control across insurance, pharmacies and providers can raise patient costs while increasing corporate profits. The WSJ, based on its review of thousands of regulatory filings, found that homeowners may face nearly even odds of receiving no payment. Drivers have also seen worsening prospects for auto liability and medical claims. U.S. property and casualty insurers posted $31.2 billion in underwriting profits in the first half of this year, nearly triple the $10.9 billion earned a year earlier, according to a report by AM Best. The report credited higher premiums and lower claim payouts, while insurers maintain they investigate all claims and pay what is owed promptly, fairly and fully. Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Read Also: Elizabeth Warren Blasts ‘Trump Math’ as Oil Giants That Put $5 Million Into His Inauguration Fund See '$23 Billion in Excess War Profits’ Image: USA TODAY Network via Reuters Connect