Kansas Insurance Department Report Ken Selzer, CPA Commissioner of Insurance
Consumer Report May 2016 Dear Kansas consumer, One of the most frequent questions we get from hundreds of Kansans each year is how many complaints our office has received concerning a particular insurance company. This report provides a snapshot of the insurance industry in Kansas during the year by allowing you to compare the number of complaints various companies have received for a particular line of business. We hope you will use this complaint index report as one tool when shopping for an insurance company or policy. Along with price considerations, coverage availability, service and financial stability, this book can help you make an informed decision when buying insurance. This report uses complaint information compiled by our Consumer Assistance and Market Regulation divisions. If you have a problem with an insurance company, or have questions about the information contained in this guide, please don t hesitate to contact our office by calling our Consumer Assistance Hotline at 800-432-2484. We are here to help answer your questions and find solutions to your problems. Sincerely, Ken Selzer, CPA Commissioner of Insurance
Consumer Report Contents About the report 1 es by line Automobile 6 Homeowners 7 Individual accident & health 8 Individual annuity 9 Individual life 10 Long-term care 11 Filing a complaint 12 Page 1
About this report What is a complaint? The Kansas Insurance Department (KID) receives thousands of complaints and inquiries each year about insurance companies. s and inquiries from the public give us an indication of the kind of service companies are providing to their customers. We can then work with companies that need to improve in certain areas. s can also help us identify insurance companies or agents that may need to be investigated for violations of Kansas insurance laws or regulations. KID also uses complaints to focus public education efforts on the issues that concern Kansas insurance consumers. Each time we receive a complaint, we notify the insurance company and any involved agents. We send the company a copy of the complaint and ask that it be reviewed and an explanation provided. Companies are required by law to respond to KID within 15 working days. Most companies are cooperative in working with us to resolve consumer complaints. We keep a record of each complaint filed by a consumer for up to three years. A formal complaint must be made in writing A formal complaint is any written communication expressing dissatisfaction or concern with an insurance company or an agent. General written inquiries received from consumers are not counted in this report. We also do not include complaints regarding products not within the jurisdiction of the Kansas Insurance Department, such as self-funded plans and Medicare prescription drug plans. What is a complaint index? The complaint index shows how a company compares to other companies in the same line of business. It is a statistic that considers a company s share of complaints in relation to its market share, or share of business written in Kansas. Since the complaint index is measured by market share, companies in all lines of business will be measured against an index of 1.00. For example, a complaint index of 1.00 means the insurer s share of all complaints received is equal to its share of all the business written in Kansas. An index of 2.00 means that the insurer s share of complaints is twice as large as its share of business written. An index of 0.00 indicates that no complaints were received for the company. Page 2
The formula is as follows: complaint share market share OR company s complaints / all complaints company s premium / all written premium Which complaints do we use? This report shows complaints for the six major types of insurance: accident and health (including HMOs), annuity, automobile, homeowners, life and long-term care. We chose these areas because they affect the most consumers. We do not include complaints regarding products not within the jurisdiction of the Kansas Insurance Department, such as selffunded plans and Medicare prescription drug plans. In, the Kansas Insurance Department closed a total of 3,014 complaints against insurance entities, but only 2,493 of these complaints were against insurance companies concerning matters over which the insurance department has jurisdiction. In order to make this report as fair as possible and treat companies equally, all closed complaints are counted without any attempt to distinguish between valid or invalid complaints. Which companies are shown? Unless otherwise noted, we list the top 20 premium-writing companies for each line, as well as any company with 10 or more closed complaints for that type of insurance during the calendar year. During, $1,928,648 was recovered for Kansas consumers as a result of KID s assistance. In, the most complaints concerned accident & health insurance (40%) followed by automobile insurance (25%). Here is the breakdown: Accident & health 40% Automobile 25% Homeowners 14% Life 10% Other 6% Long-Term Care 4% Annuity 2% All complaints, inquiries Recoveries per year (in millions) 4,000 Inquiries s $6 $5.50 2,000 2,125 3,353 2,726 3,075 2,717 2,696 1,891 2,971 1,170 3,014 $4 $2 $4.85 $3.82 $3.51 $1.93 2011 2012 2013 2014 $0 2011 2012 2013 2014 Page 3
Fifty-seven percent (57%) of total complaints concerned problems related to claims handling. Other common types of complaints involved policyholder services, underwriting and marketing and sales. Claims handling 57% Policyholder service 27% Underwriting 11% Marketing and sales 5% policyholder service underwriting 27% 11% 5% marketing & sales 57% claims handling We list individual insurance companies only, not groups of insurance companies. For example, you may be insured by a company such as State Farm. We show the name of the subsidiary company owned by State Farm. Your policy or ID card lists the exact name of your company. Why isn t my company listed? If a company isn t listed, that means it had fewer than 10 complaints during the calendar year and it wasn t one of the top 20 premium writers for that line in Kansas. Information can also be compiled for lines of insurance not listed in this booklet. For information on a company not listed or another line of insurance, please call our Consumer Assistance Hotline at 800-432-2484. How is this report divided? This report is divided into six tables: Automobile Homeowners Individual Accident and Health (including HMOs) Individual Annuity Individual Life Long-Term Care Companies may be listed on more than one table and will usually have a different complaint index on each table. For example, if you are shopping for auto insurance, go to the table titled, es by line: Automobile to check for your company s complaint index. Companies are listed in alphabetical order. Page 4
Just a snapshot The statistics in this report give you a snapshot of a company that represents complaints filed with KID regarding that company s business in Kansas for one year and one type of coverage. As indices are likely to change, you may want to review these snapshots annually. indices don t tell you everything about a company. You may also want to consider the following factors when shopping for insurance: Service Some companies sell through local agents and some through direct marketing or group plans. You may want to find out how the company services its policyholders. Licensing Status Call the Consumer Assistance Hotline at 800-432-2484 to find out if a company is licensed to do business in Kansas. Financial Stability Financial stability helps ensure a company can pay its claims. KID enforces statutory requirements and monitors the financial stability of companies licensed and operating in the state. You can check a company s financial rating by contacting one of these organizations: Moody s Investor Services 212-553-0377, www.moodys.com Standard & Poor s Insurance Rating Services 212-438-7280, www.standardandpoors.com Or link to A.M. Best Co. ratings through the KID website, www.ksinsurance.org, or by visiting A.M. Best s home page, www.ambest.com. Cost KID publishes easy-to-use booklets and shopper s guides with sample premium rates for the largest carriers doing business in Kansas. Download them free from our website at www.ksinsurance.org or call our office to get a free copy (800-432-2484). FREE BOOKLETS & SHOPPER S GUIDES Auto Health Homeowners and renters Life Long-term care Medicare supplement Page 5
es by line: Automobile Company name Market Share s 2014 2013 Allied Property & Casualty Insurance Company 1.89% 9 0.80 0.76 0.38 Allstate Fire & Casualty Insurance Company 3.19% 21 1.10 1.07 0.69 American Family Mutual Insurance Company 11.00% 66 1.00 0.75 0.91 American Standard Insurance Company of Wisconsin 1.24% 6 0.81 1.00 1.19 Farm Bureau Property & Casualty Insurance Company 7.68% 45 0.98 0.83 0.69 Farmers Insurance Company Inc. 6.45% 28 0.72 1.13 1.13 Geico General Insurance Company 1.58% 12 1.27 1.06 1.40 Geico Indemnity Company 1.42% 10 1.17 1.61 1.54 Key Insurance Company 1.03% 36 5.81 3.50 4.57 Nationwide Affinity Company of America 1.70% 4 0.39 1.19 0.49 Progressive Direct Insurance Company 4.20% 17 0.68 0.56 0.80 Progressive Northwestern Insurance Company 5.94% 23 0.65 0.97 0.93 Safeco Insurance Company Of America 2.60% 11 0.71 1.16 1.17 Shelter Mutual Insurance Company 3.08% 6 0.33 0.65 0.44 Standard Fire Insurance Company 1.21% 1 0.14 0.35 0.00 State Farm Fire & Casualty Company 1.68% 6 0.60 1.54 1.06 State Farm Mutual Auto Insurance Company 18.86% 67 0.59 0.57 0.50 Traders Insurance Company 0.67% 25 6.27 5.86 3.77 Travelers Home & Marine Insurance Company 1.20% 7 0.97 0.77 0.81 United Services Automobile Association 2.10% 8 0.64 0.36 0.48 USAA Casualty Insurance Company 1.26% 6 0.79 0.88 0.78 USAA General Indemnity Company 1.49% 0 0.00 0.90 0.50 % of total market represented in this report: 79.78% % of total complaints represented in this report: 58.93% Page 6
es by line: Homeowners Company name Market Share s 2014 2013 Allied Property & Casualty Insurance Company 1.81% 1 0.18 2.28 1.17 Allstate Insurance Company 0.85% 2 0.75 1.61 1.17 Allstate Property & Casualty Insurance Company 1.28% 2 0.50 1.71 1.59 Allstate Vehicle & Property Insurance Company 2.17% 4 0.59 0.92 1.93 American Family Mutual Insurance Company 14.21% 31 0.69 0.80 1.14 Auto Club Family Insurance Company 1.10% 5 1.44 0.73 0.69 Bremen Farmers Mutual Insurance Company 1.12% 6 1.70 1.50 0.71 Farm Bureau Property & Casualty Insurance Company 8.34% 38 1.45 0.85 1.07 Farmers Insurance Company Inc. 2.89% 10 1.10 0.95 1.53 Farmers Insurance Exchange 5.09% 12 0.75 0.62 1.38 Liberty Insurance Corp 1.10% 3 0.86 0.32 0.50 Marysville Mutual Insurance Company 1.25% 9 2.29 1.16 0.45 Metropolitan Property & Casualty Insurance Company 0.87% 1 0.37 0.00 0.00 Nationwide Affinity Company of America 2.35% 2 0.27 0.31 0.44 Safeco Insurance Company Of America 3.21% 7 0.69 1.29 0.85 Shelter Mutual Insurance Company 2.53% 10 1.26 0.68 0.71 State Farm Fire & Casualty Company 22.54% 48 0.68 0.84 0.76 Travelers Home & Marine Insurance Company 3.78% 9 0.76 0.97 0.56 United Services Automobile Association 2.46% 4 0.52 0.59 0.00 USAA Casualty Insurance Company 1.19% 0 0.00 1.44 0.22 % of total market represented in this report: 80.15% % of total complaints represented in this report: 64.76% Page 7
es by line: Individual accident and health Company name Market Share s 2014 2013 American Continental Insurance Company 1.56% 0 0.00 0.27 0.80 American Family Life Assurance Company of Columbus 3.95% 2 0.08 0.24 0.64 American Retirement Life Insurance Company 0.78% 0 0.00 0.30 0.00 Bankers Life & Casualty Company 1.45% 3 0.31 0.10 0.28 Blue Cross Blue Shield of Kansas Solutions Inc 3.03% 8 0.40 *N/A *N/A Blue Cross Blue Shield of Kansas City 6.93% 27 0.59 0.69 0.67 Blue Cross Blue Shield of Kansas Inc. 33.72% 113 0.51 0.57 0.40 Coventry Health & Life Insurance Company 10.34% 239 3.52 3.71 4.00 Coventry Health Care of Kansas Inc. 2.72% 129 7.21 6.02 *N/A Genworth Life Insurance Company 1.55% 3 0.30 0.10 0.00 Guarantee Trust Life Insurance Company 1.34% 4 0.45 0.77 1.28 HCC Life Insurance Company 0.16% 25 23.34 3.22 20.54 Humana Insurance Company 0.71% 14 3.01 2.95 3.70 John Hancock Life Insurance Company USA 0.92% 0 0.00 0.00 0.00 Northwestern Mutual Life Insurance Company 0.85% 0 0.00 0.00 0.00 Reserve National Insurance Company 0.64% 2 0.47 0.45 1.05 State Farm Mutual Auto Insurance Company 0.80% 0 0.00 0.18 0.28 Time Insurance Company 0.94% 6 0.98 0.72 2.28 Transamerica Life Insurance Company 0.73% 3 0.63 0.00 0.34 United World Life Insurance Company 2.03% 0 0.00 0.69 1.23 Washington Natl Insurance Company 1.14% 7 0.94 0.53 1.91 % of total market represented in this report: % of total complaints represented in this report: 76.28% 90.56% *Cannot calculate index due to no written premium that year. Page 8
es by line: Individual annuity Company name Market Share s 2014 2013 Allianz Life Insurance Company Of North America 4.37% 0 0.00 0.41 2.46 American Equity Invest Life Insurance Company 4.61% 0 0.00 0.76 0.92 American General Life Insurance Company 5.84% 2 0.88 0.83 1.36 Athene Annuity & Life Company 2.71% 7 6.63 7.13 2.57 AXA Equitable Life Insurance Company 2.75% 0 0.00 0.00 0.00 Farm Bureau Life Insurance Company 4.16% 0 0.00 0.54 0.78 Fidelity & Guarantee Life Insurance Company 1.46% 1 1.76 2.86 0.00 Forethought Life Insurance Company 2.14% 0 0.00 1.32 0.00 Jackson National Life Insurance Company 11.71% 2 0.44 0.40 0.99 Lincoln National Life Insurance Company 4.23% 0 0.00 0.51 0.00 Metlife Insurance Company USA 2.37% 0 0.00 0.00 0.00 New York Life Insurance & Annuity Corp 5.22% 1 0.49 0.00 0.60 Ohio Natl Life Insurance Company 1.87% 0 0.00 0.00 0.00 Pacific Life Insurance Company 2.05% 0 0.00 0.00 0.00 Pruco Life Insurance Company 5.00% 0 0.00 0.00 0.00 RiverSource Life Insurance Company 3.38% 0 0.00 0.00 0.00 Security Benefit Life Insurance Company 2.58% 4 3.98 0.00 0.87 Teachers Insurance & Annuity Association of America 3.59% 0 0.00 0.00 0.00 Transamerica Life Insurance Company 3.19% 0 0.00 0.00 0.70 Variable Annuity Life Insurance Company 2.16% 0 0.00 0.00 0.00 % of total market represented in this report: 75.38% % of total complaints represented in this report: 43.59% Page 9
es by line: Individual life Company name Market Share s 2014 2013 American Family Life Insurance Company 1.83% 1 0.23 0.47 0.97 American General Life Insurance Company 1.97% 11 2.37 4.08 3.86 AXA Equitable Life Insurance Company 1.17% 0 0.00 0.96 0.99 Farm Bureau Life Insurance Company 3.90% 3 0.33 0.21 0.41 Genworth Life & Annuity Insurance Company 1.62% 2 0.53 0.00 0.53 Great West Life & Annuity Insurance Company 1.63% 0 0.00 0.00 0.00 John Hancock Life Insurance Company USA 2.09% 3 0.61 0.20 0.00 Lincoln National Life Insurance Company 2.84% 7 1.05 0.56 0.44 Massachusetts Mutual Life Insurance Company 3.26% 1 0.13 0.00 0.16 Metlife Insurance Company USA 1.30% 0 0.00 0.29 1.87 Midland National Life Insurance Company 1.36% 6 1.88 0.86 0.27 New York Life Insurance & Annuity Corp 9.15% 1 0.05 0.00 0.00 New York Life Insurance Company 3.83% 3 0.33 0.91 0.46 Northwestern Mutual Life Insurance Company 10.44% 1 0.04 0.05 0.00 Pacific Life Insurance Company 1.81% 0 0.00 0.00 0.00 Primerica Life Insurance Company 1.47% 2 0.58 0.00 0.00 Protective Life Insurance Company 1.77% 6 1.44 0.73 0.49 Pruco Life Insurance Company 2.80% 1 0.15 0.00 0.22 State Farm Life Insurance Company 4.32% 4 0.39 0.00 0.30 Transamerica Life Insurance Company 1.56% 5 1.36 1.04 1.17 % of total market represented in this report: 60.12% % of total complaints represented in this report: 24.26% Page 10
es by line: Long-term care Company name 2014 Market Share 2014 s 2014 2013 2012 Ability Insurance Company 2.05% 3 1.61 2.07 0.74 Allianz Life Insurance Company Of North America 2.44% 2 0.90 1.67 0.62 Bankers Life & Casualty Company 11.93% 14 1.29 1.24 1.96 Berkshire Life Insurance Company of America 1.44% 0 0.00 0.00 0.00 Continental Casualty Company 3.76% 4 1.17 4.51 2.23 Equitable Life & Casualty Insurance Company 1.47% 1 0.75 0.74 1.01 Genworth Life Insurance Company 18.16% 7 0.42 0.18 0.00 Guarantee Trust Life Insurance Company 3.35% 2 0.66 0.61 0.00 John Hancock Life Insurance Company USA 11.20% 5 0.49 0.28 1.20 Massachusetts Mutual Life Insurance Company 1.27% 0 0.00 0.00 0.00 Metropolitan Life Insurance Company 5.54% 2 0.40 1.33 0.00 Mutual Of Omaha Insurance Company 3.00% 3 1.10 0.78 0.65 New York Life Insurance Company 1.30% 1 0.85 0.00 0.00 Northwestern Long Term Care Insurance Company 4.27% 0 0.00 0.00 0.00 Prudential Insurance Company Of America 2.24% 0 0.00 0.00 0.72 RiverSource Life Insurance Company 1.83% 0 0.00 0.54 0.00 Senior Health Insurance Company of PA 1.50% 5 3.67 3.02 2.35 State Farm Mutual Auto Insurance Company 2.72% 0 0.00 0.00 0.00 Transamerica Life Insurance Company 6.40% 15 2.58 2.80 2.51 Unum Life Insurance Company Of America 3.30% 0 0.00 0.69 0.47 % of total market represented in this report: 89.15% % of total complaints represented in this report: 70.33% Page 11
Filing a complaint KID s Consumer Assistance Division provides free help to consumers. Trained representatives can answer questions about your coverage or assist when you have a dispute with your insurance company. How to file a complaint If you have tried unsuccessfully to resolve a problem with your insurance company or agent, we encourage you to contact the insurance department. You may file a complaint online through our website or by mail, but we suggest you also call us because we may be able to provide immediate assistance. If you do need to file a formal complaint, we require the following information: Your name Your address Your daytime telephone number Type of insurance involved (automobile, homeowners, etc.) The name of the insurance company, agent or adjuster The policy number A clear, concise written explanation of your complaint this can be sent by mail or filed through our website Copies of supporting letters, police reports, notes, etc. Tell us what has been done, including who you ve talked to and what you were told (names, dates, times, places, etc.) Contact the Kansas Insurance Department Consumer Assistance Hotline 800-432-2484 Website: Email: Facebook: Twitter: ONLINE www.ksinsurance.org commissioner@ksinsurance.org www.facebook.com/ kansasinsurancedepartment @KSinsuranceDept BY PHONE Phone (main): 785-296-3071 Fax: 785-296-7805 Address: IN PERSON 420 S.W. 9th Street Topeka, KS 66612 Office hours: 8 a.m. to 5 p.m. weekdays Do not send originals of any of your records, and keep a copy of the letter you send us. Page 12
CONTACT US: website: www.ksinsurance.org email: commissioner@ksinsurance.org Consumer Assistance Hotline: 800-432-2484
Kansas Insurance Department 420 SW 9th Street Topeka, KS 66612-1678 1-800-432-2484 (785) 296-3071 www.ksinsurance.org commissioner@ksinsurance.org (785) 296-7805 (fax) 1-877-235-3151 (TTY/TDD)