The Insurance Industry

It seems like our rates are constantly rising, legitimate claims are being denied, insurance companies are cancelling policies for high-risk communities “to protect themselves,” but these same companies had historic profits in 2024, so what’s going on? It’s a question we’re all wondering.

The truth is the property and casualty insurance industry is thriving. According to the American Association for Justice, in 2024, they made $169 billion in profit, which marks a 90% increase from 2023. This occurred in a year with multiple climate disasters causing at least $1 billion in damages . It also occurred in a year with thousands of traffic fatalities. And those numbers don’t even begin to account for non-climate disaster related property damage or non-fatal injuries related to auto accidents.

So How Did This Happen?

                There have been massive rate hikes. For auto, rates increased on average around 25% nationwide. For homeowners, rates increased on average around 10.4% nationwide. These increases just accrue and contribute to massive profits for the industry.

In fact, insurance companies exceeded $1 trillion in direct premiums in 2024 for the first time in history.

This isn’t a one-year fluke though. There has been a steady climb in rate prices over the past decade, often outpacing inflation. Unfortunately, people are spending considerable portions of their income on premiums, and this doesn’t appear to be letting up any time soon. In Michigan, people are currently spending an average of 5.01% of their salaries on auto insurance alone.

For a lot of us, it’s a difficult time to live in. You’d hope that at least the insurance will be there when you need it though, right? Unfortunately, that doesn’t seem to be the case for many.

Why Are They Denying My Claim?

                The insurance industry is just that — an industry. They are operating exactly as intended. They are maximizing profits while minimizing costs by paying out less than they collect in their premiums.

They delay claims until you hopefully give up. They deny valid claims, hoping you won’t appeal. And they underpay you on settlements by disputing your medical treatment or repair costs. You may not even realize these tactics are being employed against you.

Has your insurance company sent you to an Independent Medical Exam following an auto accident? That’s a common tactic for disputing your medical treatment and a good indicator that you should contact an attorney.

You have rights under Michigan law. If an insurance company is acting in bad faith, you can sue. Courts have repeatedly held insurers accountable for unreasonable delays and denials. With the right legal help, you can fight back.

What Can We Do?

                At MichiganLawsuit.com, P.C., we fight insurance companies every day. If your insurance company denied your claim, contact our office. We will help you litigate the process, taking the insurer all the way to trial, if necessary.

A denied injury claim can create piles of medical debt. It could cause you to live in pain to avoid accruing debt. It can truly ruin lives. The same goes for a denied property claim. It could cost you thousands in repairs. It could also cause you to live in hazardous conditions while you raise funds for repairs.

And unfortunately, you’re now paying higher premiums to get stuck in this position, which is also straining budgets, harming many working-class communities. So it’s a double whammy — you’re paying more and getting less.

Nobody deserves this, but unfortunately, we see this every day with the people that call into our office. You don’t have to face this alone. We will help get the justice you deserve.

Conclusion

Insurers may blame climate change, “frivolous lawsuits,” or a rise in risky drivers and homeowners for rate hikes, but the financial reports tell a different story. Their profit margins are higher than ever.

Personal injury attorneys are a necessary balance to this system, making sure to keep insurers in check and making sure your rights are upheld. If you or someone you know had their claim denied, call us today at (855) 529-6424 to schedule a free consultation. We can help.