Claims Handling Accounts for Large Share of Insurance Complaints, Poll Shows

Claims handling continues to be one of the biggest sticking points in the insurance process, a new report shows.

Complaints about the claims handling process appear to be on the rise. In 2024, nearly half of Americans who filed a formal complaint saw their insurance provider either settle the claim or overturn their decision, according to a recent poll by ValuePenguin.

Claims handling issues accounted for 62.5% of all insurance complaints last year. Delays (22.2%) and unsatisfactory settlements or offers (12.2%) were the top claims process issues. Other claim-handling complaints revolved around denials, adjuster handling, prompt pay and state-specific issues and more, the poll shows.

After claim handling, policyholder service saw the next biggest share of complaints. ValuePenguin conducted an analysis of National Association of Insurance Commissioners closed complaints data to provide a breakdown.

The analysis of the NAIC data shows:

• Claim handling—39,680 complaints (65.2% of total)
• Policyholder service—12,534 (20.6%)
• Underwriting—7,043 (11.6%)
• Marketing and sales—1,604 (2.6%)

Auto Insurance complaints rose 31.6% from 2012 to 2024, making up 35.6% of all insurance-related complaints. Complaints about physical damage coverage spiked 164% in the same period.

Insurance coverage types with the largest percentage increase in complaints between 2021 and 2024 include homeowners hazard insurance (up 4,866.7%), business interruption insurance (up 500%) and preexisting condition coverage under accident and health insurance (up 300%).

Policyholder service complaints accounted for 20.6% of cases, with common concerns including state-specific issues, coverage questions, premium refunds and billing problems.

Accident and health insurance generated the largest rise in volume of complaints in 2024, with complaints rising by 17.3% from 26,266 in 2021 to 30,810 in 2024.

Liability insurance was the only category with fewer complaints, dropping 31% since 2021, according to ValuePenguin.