Warren and Hawley Probe Six Major Insurers Over Unpaid Claims
Senators Elizabeth Warren and Josh Hawley launched an investigation into six major insurers over claims-processing practices and rising underwriting profits.
U.S. Senators Elizabeth Warren and Josh Hawley launched a probe into the claims-processing practices of six major home and auto insurers, including State Farm and Allstate. The investigation follows a Wall Street Journal analysis suggesting an increasing likelihood that homeowners and drivers will receive no payout on their claims.
In letters sent Friday, the senators requested data on claims closed without payment and questioned whether insurers are using payment delays and aggressive handling practices to inflate profits. This inquiry coincides with a period of high profitability for the industry, as U.S. property and casualty insurers reported $31.2 billion in underwriting profits for the first half of 2026, nearly triple the amount from the previous year.
The senators also demanded disclosure regarding compensation packages for employees and contractors responsible for determining payouts. State Farm responded that it is reviewing the letters and maintains that it pays benefits available under policies based on facts and coverage.
