State Regulators are Failing to Provide Transparency or Concrete Relief for Homeowners Facing Coverage Crisis as NAIC Meeting Wraps
WASHINGTON, DC – As state insurance commissioners from across the country wrap up their National Association of Insurance Commissioners (NAIC) Fall Meeting in Hollywood, Florida, homeowners struggling with denied claims, skyrocketing premiums, and widespread non-renewals deserve answers about why regulators continue to prioritize industry interests over consumer protection.
In response, Unlocking America’s Future released a new research report titled ‘Profits to Paychecks: How Rising Premiums Become Fortunes While Homeowners Struggle.’ The research report details top home insurance corporations profits and executive pay, painting a stark picture that shows the nation’s largest publicly traded home insurers posted over $9 billion in underwriting profits in the third quarter of 2025 alone as homeowners pay more for less coverage.
“This disconnect between homeowners in nearly every state, who are grappling with the home insurance industry’s profit-maximizing insurance crisis, and the failure of state insurance commissioners couldn’t be more stark,” said Kyle Herrig, spokesperson for Unlocking America’s Future. “When a handful of top home insurance companies post multi-billion-dollar underwriting profits in a single quarter, their constituents should be asking their state insurance commissioner who they actually represent and what they are doing to provide concrete relief for homeowners.”
While the conference undoubtedly swarmed with top home insurance industry corporations, representatives, and lobbyists, the NAIC and state regulators have failed to provide needed transparency about opaque private insurers profit-maximizing schemes and their plans to help policyholders or hold insurance companies accountable for their pattern and practice of delaying, denying, and abusing the legal system over legitimate claims.
Here are five questions state insurance commissioners must answer about their failure to protect homeowners:
- How can insurers claim financial distress while simultaneously reporting billions in quarterly profits?
- What specific steps are you taking to ensure transparency and provide concrete relief for homeowners facing insurance abandonment?
- Can you explain the extent of industry influence at the NAIC meeting and how it compromises independent regulatory oversight?
- Why are North Carolina regulators actively advising homeowners NOT to file legitimate insurance claims, effectively protecting insurers at consumers’ expense?
- What accountability mechanisms exist to penalize insurers for systematic claim delays, wrongful denials, and widespread policy non-renewals that leave communities vulnerable?
Key Points:
Home insurance companies consistently claim that premium increases are necessary and unavoidable due to rising building costs, more frequent and severe natural disasters, and climate-related risks. They’ve presented these arguments to state insurance commissioners, policymakers, and the public to justify double-digit premium hikes that have placed enormous financial strain on American homeowners. Yet continued insurance company profitability stands in sharp contrast to what policyholders across the country are experiencing.
State-by-State: The Scope of Regulatory Failure
- In Florida, 20% of homeowners don’t currently have home insurance at all, and poor inland counties see some of the highest rates of non-renewals.
- In California, insurers have not renewed millions of homeowners since 2020. Even those that were renewed sometimes had their policies hollowed out to exclude coverage for issues like wildfire and smoke damage.
- In Texas, despite stronger storms, state officials and insurers have failed to adopt resilient construction incentives used by every other gulf coast state. Meanwhile, insurance companies in Texas raised deductibles on wind and hail damage and denied more claims.
- In Minnesota, home insurers are raising premiums even as consumers file twice as many complaints against their insurance companies as they did in 2020.
- North Carolina home insurers are refusing to renew so many policies in the Eastern and Western regions of the state that regulators have warned homeowners to limit their chance of non-renewal by NOT filing some claims.
This week’s NAIC meeting represents a critical moment for state insurance commissioners to advance real reforms, but the lack of transparency and concrete plans to help struggling homeowners suggests regulators continue to prioritize industry interests over consumer protection. State insurance commissioners have both the authority and the responsibility to ensure that home insurance markets function fairly, that legitimate claims are paid promptly, and that policyholders are protected from retaliatory practices. Yet they have consistently failed to use these tools even as the evidence of consumer harm becomes overwhelming and demands immediate regulatory action.
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