Consumers can use statistics to help them shop around for different types of coverage

FOR IMMEDIATE RELEASE
July 26, 2011
Contact: Jason Moon 517-335-1700
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LANSING- The Office of Financial and Insurance Regulation (OFIR) today released 2010 consumer complaint statistics for insurance companies doing business in Michigan. Last year, the agency received 3,645 consumer complaints, down from more than 4,000 in 2009. In 2010, 49 percent of insurance complaints involved claim handling, 28 percent customer service and 14 percent underwriting.

OFIR urges consumers to contact their insurance company or agent directly before filing a complaint. Although a majority of complaints do not result in adverse actions against providers, OFIR can assist consumers filing complaints by resolving questions or problems concerning the terms and benefits provided by their insurance policy, the premiums being charged, or their rights pursuant to the Michigan insurance laws. 

In 2010, more than $8 million in additional claim payments, premium refunds, and policy rating changes were received by consumers through the resolution of complaints.

Complaints were also broken down by type of coverage with 53 percent of insurance complaints involving accident and health policies, 19 percent automobile coverage and 15 percent homeowners insurance.

Included in the statistical breakdown are insurance company complaint ratios. Complaint ratios are created by dividing the dollar amount (in millions) of written premiums into the number of filed complaints. While the ratios provide complaint information that can be compared across insurance companies, consumers need to keep in mind that complaints don't necessarily mean there has been wrong-doing on the part of the company.

Complaint ratios are provided as a tool to help consumers choose an insurance company, but other factors may be more meaningful when comparing companies, including:

• Premiums charged
• Benefits provided by the contract
• Financial stability of the company
• Levels of service provided

Overall insurance complaint statistics can be found at:
http://www.michigan.gov/lara/0,1607,7-154-10555_12902_12912---,00.html

Detailed insurance company compliant statistics and ratios can be found at:
http://www.michigan.gov/lara/0,1607,7-154-10555_12902_12916---,00.html

Consumers can file a complaint with OFIR by calling 877-999-6442 or visiting: http://www.michigan.gov/lara/0,1607,7-154-10555_12902_12907---,00.html

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