Insurance Shopping: Focus on What Matters—Policy + Performance

You need the correct information to pick the correct policy and insurance company

Would you buy a car you couldn’t inspect—no specs, no test drive—just because a celebrity said so? Too often, that’s how we’re sold insurance. We’re pushed toward catchy ads while the two things that actually matter stay out of sight: (1) what’s in the policy, and (2) how the company performs on claims (percent paid, how fast they pay, and how many are closed without payment).

The transparency gap:

Insurers report extensive claims data to regulators and to the National Association of Insurance Commissioners (NAIC), but state laws and confidentiality rules often keep the most useful performance metrics out of consumers’ hands. That means shoppers can’t easily compare which carriers pay more claims, faster—the very essence of value.

For instance, insurers already report detailed claims and underwriting metrics to regulators through the NAIC’s Market Conduct Annual Statement (MCAS)—far beyond what consumers can see on a shopping page. This information includes granular fields such as:

• Claims opened/closed (with payment vs. without payment) and how long they took to close (0–30, 31–60, … >365 days).

• Median days to final payment—a direct measure of timeliness.

• Lawsuit counts (opened/closed) and lawsuits closed with consideration for the consumer.

• Underwriting activity: policies in force, new business, company-initiated non-renewals and cancellations, plus complaints received directly by the company.

• For HO specifically, carriers also indicate digital claim settlement usage and identify third-party vendors/algorithms used in digital claims.

  
  

Regulators collect these via the NAIC online MCAS application across multiple lines (Homeowners, Private Passenger Auto, Life, Annuity, Health, LTC, Lender-Placed, Private Flood, Travel, Pet, etc.). However, an insurance purchaser can only view very limited information including:

• The NAIC’s Company-level complaint index: Search a carrier and coverage line in your state on the NAIC Consumer Insurance Search (≈1.00 = average; <1.00 better than average).

• MCAS aggregates: Use the NAIC MCAS Data Dashboard to view state-level ratios (e.g., closure timing) by line. Helpful for market context—but it won’t reveal company-specific performance.

Practical ways to tilt the odds in your favor:

• Use a true broker for business coverage. Look for credentials like CPCU or CIC and carriers that actually specialize in commercial lines—not just personal-lines advertisers.

• Read the contract before you buy. Ask for an exemplar policy (the full form, not just the declarations page).

• Check complaint patterns. NAIC’s Consumer Complaint Index shows how a company compares to the industry average (≤1.0 is better; >>1.0 is worse).

• Confirm financial strength. Prefer A.M. Best (A− or higher) for solvency ratings.

• Consult Other Resources. United Policyholders Website, The Texas Office of Public Insurance Counsel (OPIC) (if you’re in Texas), your state DOI consumer pages, and Rutgers’ Essential Protections for Policyholders project are excellent places to start.

  
  

Why this matters:If claims performance data were public and accessible, policyholders could reward carriers that keep their promises—and the market would push others to improve. That’s how accountability—and real value—take hold. Capitalism can’t work if purchasers aren’t provided the information they need to make rational buying decisions. Currently, much of this information is being withheld from insurance buyers. It is time to ask our legislators, departments of insurance and other officials to require insurers to give insureds the information they need to make good insurance purchasing decisions.

Action items

1. Request the full policy (specimen form + endorsements) before you buy.

2. Check the NAIC complaint index for each candidate carrier and prefer ≤1.0.

3. Verify financial strength with A.M. Best (A− or better).

4. For businesses, hire a credentialed broker (CPCU/CIC) and target commercial-lines carriers.

5. Document your claims: dates, communications, estimates, and time to payment.

6. Advocate for transparency: ask your state legislators and DOI to publish claims performance metrics (percent paid, closed-without-payment, and median time-to-payment).

7. Share this with your team/clients so buying decisions focus on contract terms and claims performance, not slogans.

8. Contact us if you have any questions or if we can help you with your insurance dispute.