U.S. Senate Committee on Banking, Housing and Urban Affairs Ranking Member Elizabeth Warren and Sen. Josh Hawley have asked State Farm, Allstate, USAA, Farmers, Liberty Mutual and American Family to explain reports that a growing share of homeowners and auto insurance claims are being closed without payment. The lawmakers requested information by Oct. 16, 2026, citing concerns about whether policyholders are receiving the coverage they expect after losses. The letters cite Wall Street Journal findings that the five largest home insurers did not pay more than 44% of claims resolved in 2025, up from 36% a decade earlier. Auto insurers reportedly made no payment on 45% of resolved liability and medical claims in 2025, compared with 35% a decade earlier. Over the same period, homeowners insurance premiums rose 70% nationally from 2019 to 2025, while premiums for an average homeowner with USD 350,000 in rebuilding coverage increased by about 39%, or USD 760, in 2025. Warren and Hawley also raised questions about whether aggressive claims handling practices, including payment delays, are contributing to insurers’ profit margins. They noted that 12% of Americans lacked home insurance in 2024, up from 5% in 2019, as higher premiums and lower payout rates prompted some homeowners to forgo coverage.
U.S. Senate Committee on Banking, Housing and Urban Affairs lawmakers seek information from six insurers over rising no-payment claim closures
U.S. Senate Banking Committee Ranking Member Elizabeth Warren and Sen. Josh Hawley have sought information from six major insurers about rising rates of homeowners and auto claims closed without payment. Citing reported no-payment rates above 44% and sharply higher premiums, they requested responses by Oct. 16, 2026.