Senator Hawley Investigates Rising Trend of Unpaid Insurance Claims
Missouri Senator Josh Hawley has embarked on a bipartisan initiative to scrutinize the increasing trend of home and auto insurance claims resolved without payment to policyholders.
Hawley's inquiry targets six major insurance carriers—State Farm, Allstate, USAA, Farmers, Liberty Mutual, and American Family—following reports of rising insurance costs amidst escalating instances of unresolved claims. Statistics reveal a worrying pattern: in 2025, more than 44% of homeowners claims with the nation's five largest insurers closed without disbursing any payment, a significant increase from 36% a decade prior. Auto liability and medical claims reflect a similar trajectory, climbing from 35% in 2016 to approximately 45% in 2025. Hawley's investigation aims to elucidate changes in claims-handling practices and assess potential links between these practices and employee incentives. The companies involved are expected to submit their responses by October 16.
This initiative comes on the heels of Hawley's earlier efforts addressing Missouri storm-related complaints. In April, after reports of lingering issues following the May 2025 tornadoes, Hawley pressed State Farm on delayed payments, low settlement offers, and shortcomings in temporary housing and debris removal services. Specific queries included the count of closed claims without payment and the reasons driving these denials, highlighting the growing scrutiny of insurance practices during natural disasters. As homeowners premiums have experienced a nationwide surge of nearly 70% from 2019 to 2025, the urgency for transparency in claims resolution has gained momentum, capturing the attention of both the industry and policyholders.
Key Statistics of Claims Closure Trend
| Year | Homeowners Claims Closure | Auto & Medical Claims Closure |
|---|---|---|
| 2015 | 36% closed with no payout | 35% closed with no payout |
| 2025 | 44% closed with no payout | 45% closed with no payout |
The insurance industry's stance is that a closed claim without a payout does not inherently mean coverage was improperly denied. However, the increasing prevalence of these occurrences merits thorough examination. This trend, coupled with the significant rise in premiums, underscores the importance of transparency and responsive claims practices, reassuring policyholders navigating rising costs and claim hurdles.