Survey finds state insurance Web sites lacking
Posted
Nov 11 2008, 05:13 PM
by
Karen Datko
Rating:
This post comes from Mark Huffman at partner blog ConsumerAffairs.com.
When it comes to selecting the right insurance policy, consumers need as much clear, concise information as possible. A study released by the Consumer Federation of America suggests they aren't getting it from their states.
The study also found that state insurance department Web sites in six states were "excellent," while those in 18 states were deemed to be "inadequate."
CFA is sending the report to all state insurance departments with a personal letter urging the states whose Web sites are not yet excellent to make improvements.
"At a time when consumers are under increasing financial pressure, state insurance departments can do their part by making available current information about the rates, solvency, and complaints of individual insurers as well as tips for consumers to use to secure fairer and faster claims settlements," said J. Robert Hunter, CFA's director of insurance and a former Texas insurance commissioner. "And it's essential that insurance departments widely publicize the availability of their Web sites and related information."
By using information on the best state Web sites, consumers purchasing home and auto insurance can potentially save hundreds of dollars a year in lower premiums and avoid serious problems settling claims.
"The best state Web sites contain far and away the most objective and useful information available to consumers," said Stephen Brobeck, CFA's executive director. "Only state insurance departments have the expertise and resources to provide up-to-date information about individual insurers," he added.
Best sites
The report found that California, Georgia, Kansas, Oklahoma, Texas and Utah have "excellent" Web sites with complete, up-to-date information that is easy for consumers to use.
Consumers accessing these Web sites could easily find current price, complaint and solvency information to make well-informed purchase decisions and could find key information on how to get the best claim settlements as well.
But the report also concluded that 18 states -- listed below -- have Web sites that are inadequate. Those Web sites lacked important aspects of information about purchase and claims settlement decisions in auto and home insurance.
"States with inadequate Web sites do not have to reinvent the wheel," Hunter said. "They need only use the excellent sites already in use by other states as a guide for improving their own sites."
Report card
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Excellent: California, Georgia, Kansas, Oklahoma, Texas and Utah.
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Good: Alaska, Arizona, Arkansas, Colorado, Delaware, Florida, Maine, Missouri, New Jersey, Ohio, Oregon and Wisconsin.
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Fair: District of Columbia, Illinois, Kentucky, Louisiana, Maryland, Michigan, Montana, New Hampshire, New York, North Carolina, North Dakota, Pennsylvania, South Carolina, Virginia and Washington.
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Inadequate: Alabama, Connecticut, Hawaii, Idaho, Indiana, Iowa, Massachusetts, Minnesota, Mississippi, Nebraska, Nevada, New Mexico, Rhode Island, South Dakota, Tennessee, Vermont, West Virginia and Wyoming.
