The Insurance Industry Reaps Huge Profits at the Expense of Claimants

The Insurance Industry including Allstate, State Farm, Farmers, USAA, and Progressive have made billions of dollars over the past several years. These record profits have occurred despite many Americans suffering huge losses from major hurricanes and other disasters. A main reason for this profitability in the insurance industry is the aggressive procedures Allstate and many insurance companies have installed to deny and delay paying claims. This tactic of denying and delaying payment of claims has helped the insurance industry to obtain over $44 billion in profits in 2005 and what looks to be almost $60 billion in profits in 2006. It also has taken money from Texas families and businesses that have suffered the loss of a loved one, serious injuries, loss of home & possessions, or covered business losses.

Despite huge profits the insurance industry continues to find ways to not pay legitimate claims. CNN recently did a news story on All State and Farmers Insurance strategy of Denying, Delaying, and Defending all small claims regardless of the validity of the claim. In Defending all insurance claims, they spend millions of dollars defending small claims in a hope that most injured claimants or damaged claimants will give up or accept a settlement of pennies on the dollar. As most injured people do not want to fight a large insurance company or have the resources to survive when they can't work or have lost their home or business, many people with legitimate insurance claims accept low settlements.

For information on Texas insurance claims, go to Texas Insurance Claim Lawyer Jason Coomer's Website.