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Insurance Companies Caught Cheating Storm Victims

A shocking investigation by 60 Minutes exposes a widespread conspiracy by insurance companies to deceive and lowball storm victims. Licensed adjusters described it as a “deliberate scheme” committed by multiple insurance companies “over and over again” designed to mislead policyholders and reduce payouts.

Key allegations include:

Altered damage reports to reduce payouts
Deceptive tactics to misrepresent adjusters’ reports and conceal major changes by insurers
Illegally omitting damage from assessments
Systematic scheme to force policyholders into costly lawsuits

Insurers are effectively “playing the odds and winning”

The 60 Minutes exposé described a scheme designed to “make them make us pay” or, in other words, file a lawsuit. Insurance companies delay, deny, and lowball policyholders, knowing that people are reluctant to file a lawsuit. They are playing hardball with customers who have dutifully paid premiums for decades to reduce their payouts.

Insurance companies are weaponizing a crisis they created

This deceptive strategy not only pads insurer profits but also results in a spike in litigation, which the industry uses as leverage in state legislatures to strip away policyholders’ legal rights. Insurers abandoned Louisiana homeowners after hurricanes Laura, Ida, Delta, and Zeta. As a result, there was a spike in lawsuits from cheated policyholders. Commissioner Tim Temple and the industry have cited increased litigated claims to gut consumer protections and make it harder to sue insurers.

Call to Action

The people of Louisiana have no reason to trust insurance companies. Insurance companies pocketed the premiums they collected for decades and deserted Louisiana policyholders after the storms of 2020 and 2021. Commissioner Tim Temple and our elected representatives in the legislature work for the people of Louisiana, not big insurance companies. We desperately need real insurance reforms that lower costs, increase transparency, and hold insurers accountable when they act in bad faith.

Watch the entire 60 Minutes story on insurers deceiving and shortchanging policyholders here.

< Older Post

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By Ben Riggs • July 10, 2024

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Insurance Industry: "Credit Scores" Among Reasons for Louisiana's Rising Insurance Costs.

By Ben Riggs • February 16, 2024

Insurance Industry: "Credit Scores" Among Reasons for Louisiana's Rising Insurance Costs. A new report shows that auto insurance rates are skyrocketing, rising by 26% across the U.S. On average, Louisiana drivers pay $2,909 annually, roughly 6.53% of their income for auto insurance. Wayne Watley at Watley Insurance Group lists “credit scores” among the reasons for Louisiana’s rising auto insurance costs, including poor roads and uninsured motorists. Mr. Watley goes on to say, “It’s a challenge because we’re not one of the richest states, but we have some of the highest premiums.” He is correct—and the data backs him up. Insurance companies use credit scores to determine insurance rates for policyholders. Louisiana ranks 48th in median household income and 49th in average credit score . According to a recent study , safe drivers in Louisiana with poor credit pay 111% more than safe drivers with excellent credit ($1,505 / $713). Consequently, Louisiana has the second-highest auto insurance rates in the nation, which leads to more uninsured motorists, another primary cause of higher insurance rates. The use of credit scores in rate setting also creates perverse incentive structures that make Louisiana roads less safe. In Louisiana, safe drivers with poor credit pay an average of $905 more than drivers with a DWI and excellent credit ($3,548 / $2,643). Meanwhile, traffic fatalities increased by 21% from 2019 to 2022 in Louisiana, and the fatality rate per 100 million vehicle miles traveled increased by 18%, according to KPLC . Louisiana desperately needs real insurance reforms that lower costs, protect consumers, hold insurers accountable, and make our roads safer.