ILL. HOMEOWNERS COMPLAINTS UP 16%:

While Illinois consumers filed fewer complaints overall about their insurance companies and HMOs in 2003, complaints regarding homeowners insurers were up for the second consecutive year, according to statistics released by the Illinois Department of Financial and Professional Regulation (IDFPR). In 2003, as in 2002, homeowner insurance complaints increased by 16 percent, from 1,462 in 2002 to 1,692 in 2003. The bulk of this increase occurred in complaints against companies’ underwriting practices, which increased from 678 complaints in 2002 to 851 complaints in 2003, a 26 percent increase. Acting Insurance Director Deirdre Manna pinned the complaint increase on weather-related losses and insurers’ “more selective underwriting criteria.” Automobile complaints also witnessed a significant increase in 2003. The rise in auto complaints, from 3,885 in 2002 to 4,227 in 2003, represents a 9 percent increase. The majority of this increase was due to an 11 percent increase in the number of auto claim handling complaints. In contrast, the number of auto underwriting complaints actually witnessed a slight decline from 2002 to 2003.

Topics Trends Homeowners