Delay, Deny, Defend: Has the Insurance Industry Gone Too Far?

by Ken Miller, AASP/NJ President

The shocking December murder of UnitedHealth Group’s CEO sparked a national conversation about the role of insurance companies and their practices.

Early reports suggest this may have been a targeted attack, possibly tied to an insurance issue. Investigators discovered shell casings at the scene inscribed with the chilling words “delay, deny, defend” – a phrase many recognize as the title of a 2010 book by Rutgers law professor Jay Feinman.

Feinman’s book is a must-read for anyone seeking to understand the tactics insurers use to withhold payment on legitimate claims. It exposes strategies designed to protect corporate profits at the expense of policyholders. Although the book was written nearly 15 years ago, the troubling reality is that these practices have only intensified since its publication.

If these early theories about the crime prove accurate, it raises a profound and uncomfortable question: Have insurers pushed their cost-cutting measures too far? For decades, insurers have prioritized shareholder returns over policyholder obligations, often at the cost of fair and timely settlements. But this tragic event may force us to confront the darker implications of these priorities.

Tragic events often have a way of illuminating systemic failures that otherwise go unnoticed or are willfully ignored. Consider the landmark John Eagle Collision case, which exposed the dangers of repairers deviating from OEM repair procedures. That lawsuit didn’t just hold one shop accountable; it reshaped how the entire industry views liability and the critical importance of following manufacturer guidelines.

Similarly, this case – if tied to insurance practices – may serve as a wake-up call for an industry plagued by dysfunction. The current system is not just broken; it is actively harmful to the very people it is meant to protect. Policyholders are not just numbers on a balance sheet; they are individuals and families who purchase insurance to safeguard against life’s uncertainties. Yet, they often find themselves trapped in a game designed to minimize payouts rather than provide the promised safety net.

Behind every claim denied, delayed or underpaid is a person in crisis. These are people who have suffered losses, whether due to car accidents, natural disasters or health emergencies, and who turn to their insurer for the support they have paid for through premiums. Instead, many find themselves battling a system engineered to protect profits, not people.

This is not just a matter of inconvenience; it’s a matter of justice. Insurers’ refusal to meet their obligations creates ripple effects – financial strain, emotional distress and in some cases, life-altering consequences. While most policyholders don’t resort to violence, this tragic event underscores the frustration and desperation felt by many. The insurance industry’s commitment to profit over policyholders has been an open secret for years. But this is an inflection point. Will this horrific event finally force the industry to confront the ethical and human costs of its practices? Or will it simply reinforce the status quo, with insurers doubling down on their tactics while regulators and lawmakers look the other way?

One thing is clear: the insurance system must change. Policyholders deserve better than a system that views them as adversaries. They deserve prompt, fair and equitable treatment – not gamesmanship designed to maximize corporate profits. We can only hope that this tragedy compels meaningful reform in an industry long overdue for accountability. Because the stakes couldn’t be higher – not just for those seeking justice, but for the future integrity of the system itself.

Want more? Check out the January 2025 issue of New Jersey Automotive!