Who Has the Best Complaint Record in Insurance?

If you’re in the market for insurance—for your car, home, health, or life—you undoubtedly take price, coverage options, and financial strength into consideration. 

But there’s another factor to weigh which can be as, or even more, revealing: complaint records.

Why is this important? Because a company’s complaint record is a simple way of gauging how the company values its customers when they file claims. 

It’s one thing to sell policies; it’s another to stand behind them with integrity, timeliness, and clarity when the unexpected happens or a query arises.

In this article, we will discuss what insurance companies boast the best (and worst) complaint records, how to read complaint statistics and what it holds for you as a consumer.

Why Do Complaint Records Count

When you buy an insurance policy, you are basically receiving a promise: if you suffer a misadventure, the company is going to assist you living through it. Nonetheless, not all companies keep this promise in the same spirit of good faith. Some are infamous for misleading clients, denying claims, or making client communication all but impossible. This, naturally, can lead to customer discontent – and subsequently, to complaints.

Complaint records are collected, and then listed, by regulatory bodies in the respective countries. Some prominent examples are:

• The National Association of Insurance Commissioners (NAIC) in the US
• The Financial Conduct Authority (FCA) and the Financial Ombudsman Service (FOS) in the UK

By scrutinizing these records, you can get past the hype and give the companies the scrutiny they genuinely deserve

How Do They Compiling Complaint Ratios

The NAIC is the National Association of Insurance Commissioners in the United States which keeps a record of complaints about insurance companies. To be able to compare insurers, they publish a "Complaint Index" which adjusts for the size of the insurer (measured by premium volume). In general, a complaint index of:

• 1.00 = average number of complaints for the size of the insurer
• Below 1.00 = better than average
• Above 1.00 = worse than average

The Insurance Companies You Need to Consider If You Want a Clean Complaint Record

If you’re tired of the same insurance companies pulling off 80’s corporate tricks and treating a customer complaint as an act of rebellion, this list is for you. According to recent data by the National Association of Insurance Commissioners, and the beloved J.D. Power surveys: the good guys are…

1. Amica Mutual Insurance

• Complaint Index: ~0.20 to 0.30 (depends on year and type of insurance)
• What People Say: They are the nicest people at customer service, the claims are handled fairly, and they are transparent
• And for That: Amica is a mutual company and its clients are its shareholders. Not only do they treat you well (95% retention rate) but they also share with you—a lot.

2. USAA

• Complaint Index: ~0.30 to 0.40
• What People Love: They are a USAA member and I am a fan of the service
• > It Boasts: The top ratings in many customer satisfaction surveys, including J.D. Power
• Just a Little Thing: Available just for the military and their kin

3. Chubb Insurance

• Complaint Index: ~0.25 (the best in home insurance)
• For: People smiles when they talk about the company, the coverage is outstanding and the claim is paid promptly
• Who Are They: Chubb is known for its claims concierge service, it has a great number of opportunities in the policy, and it pays the claims quickly

4. COUNTRY Financial

• Complaint Index: About 0.40
• What Am I Evaluating: COUNTRY people are friendly, the price competitive, the service is friendly, and the claims handling is really good
• They Specialize In: Car and housing policies that are concentred in the Midwest and the rural landscapes

5. Erie Insurance

• Complaint Index: About 0.35
• Why You Should Like Them: Erie is an insurance company with local agents, a lot of happy customers, and a very low number of complaints that escalate to a regulatory authority

Most Reliable Health Insurers by Complaint Volumes

Health insurance sector is the one with most complaints, because it is more prone to be complained of due to it being more complicated. However, in this sector there are stars, too:

• Kaiser Permanente, which is not only high in customer satisfaction, but has less complaints, too, especially on the west coast
• Blue Cross Blue Shield (e.g., Regence, Premera) – There are BCBS affiliates that have less complaints on their books
• Humana (Medicare Advantage) – It is often claimed that seniors are happy with its customer service

UK: Insurers with Fewest Complaints

In the UK, the Financial Ombudsman Service (FOS) is offering information not only about which companies receive the least complaints, but also how many of those are resolved in favor of the customer.

Unblemished British Insurers:

• NFU Mutual – The complaint volume has been consistently low and the personal touch is appreciated
• LV= (Liverpool Victoria) – It is not only well graded by the clients but has complaints that are not overturned
• Direct Line Group (incl. Churchill, Privilege) – One of the bigger ones, yet still not too much of a complaints magnet
• Aviva – Also among the bigger insurers; still it is frequently concluding complaints in favor of the customer

Why Complaints Matter: The Quality of Service

Complaints are more than a number – it tells you how your company is treating its customers, when things go wrong.

Take notice, especially:

• If you notice that the company takes longer and longer to process a claim, then this is a sure sign of claiming trouble
• Pays claims fairly
• Is clear in their communication
• Is fast in the resolution of complaints
• Cares about your retention as a client

Avoiding Insurers with a Shady Reputation

Amazingly, some of the biggest names in the industry are not leading the way in consumer sentiment. Try to stay away from companies that:

• Always perform badly in the national complaint index Automatic checkout
• Their name is often linked to various problems the consumers face
• Have a high percentage of denied claims

If in doubt, run an NAIC Consumer Complaint Index search. Or check the FOS reports about the company you are interested in. Why? Both sources are free of charge and accessible online, and all the information you get is invaluable. The help is there, so why don’t you use it?

Conclusion: Safety Begins with Trust

Buying the best deal can be tempting. However, when disaster hits, the most important thing is not the price you were paying, but how your insurer is going to help you out. 

It is for this reason that looking up complaint records should be among the first steps you take as a buyer.

If you are looking for peace of mind, try to stick to an insurer with a high customer satisfaction rate and low complaint index. Even if they are not as prominent as other carriers, there are always companies like USAA, Amica, Erie Insurance or NFU Mutual, where you can be sure they’ve got your back.

Price matters only when you get what you’ve been promised.

 

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