Senators Elizabeth Warren (D-Mass.) and Josh Hawley (R-Mo.) have reportedly launched an inquiry into major home and auto insurers, requesting data regarding claims that close without any payment. The senators sent letters to State Farm and Allstate Corp. (NYSE: ALL), asking for details on closed-claim data, including formal denials and other closures resulting in no payout.
The letters specifically ask the companies to explain whether employee, contractor, or adjuster compensation depends on claim decisions or payouts. Warren and Hawley cited findings that raise concerns about consumer trust, criticizing what they described as increasingly aggressive claims-handling practices, including tactics used to delay payments as insurers pursue stronger profits.
The inquiry expands on Warren’s broader scrutiny of concentrated influence in the insurance sector. In August, she criticized vertical integration involving UnitedHealth Group Inc. (NYSE: UNH), arguing that control across insurance, pharmacies, and providers can raise costs while increasing corporate profits.
The Wall Street Journal, based on a review of regulatory filings, found that homeowners may face nearly even odds of receiving no payment. Drivers have also seen worsening prospects for auto liability and medical claims. According to a report by AM Best, U.S. property and casualty insurers posted $31.2 billion in underwriting profits in the first half of this year, nearly triple the $10.9 billion earned in the same period the previous year.
State Farm and Allstate Corp. did not immediately respond to a request for comment from Benzinga.
