Your Premiums Paid. Your Claim Denied. --- The Business Model Behind Insurance Refusals

Some insurance companies figured out they can increase profits simply by paying out less. It’s not complicated. When claims don’t get paid, margins go up.

Insurance carriers don’t make money by writing checks. They make money by limiting them.

Take E. Adams, a 60 year old woman left in a coma after a multi vehicle crash in Washington State. Her carrier, Farmers, denied the claim by arguing the other driver acted intentionally, and therefore the crash was not an accident. No coverage.

Or D. Potter. She spent years selling disability policies for Unum. When multiple sclerosis forced her to stop working, Unum denied her claim, calling the condition “self reported.” The same policies she sold to protect others didn’t protect her.

These aren’t rare outliers. They’re examples of a system built around deny, delay, defend. Do whatever it takes to avoid paying valid claims.

At companies like Allstate, internal training materials have focused on minimizing payouts. Adjusters have been rewarded for high denial rates. There have even been document destruction events dressed up as office parties.

Sound extreme? Think your carrier is on your side when something goes wrong?

Before you assume they are, take a closer look at how claims are really handled.