Hawley targets insurers over surge in claims closed without payment

Missouri Sen. Josh Hawley is joining a bipartisan investigation into why a growing share of home and auto insurance claims are being closed without any payment to policyholders.

Hawley sent letters to six major insurers seeking information about their claims practices as Americans face sharply higher insurance costs.

He cited data showing the nation's five largest home insurers closed more than 44% of resolved homeowners claims without payment in 2025, compared with 36% a decade earlier.

For auto liability and medical claims, about 45% were resolved without payment in 2025, up from 35% in 2016.

The senator is seeking answers from State Farm, Allstate, USAA, Farmers, Liberty Mutual and American Family. They want to know why claims were closed without payment, how claims-handling policies have changed, and whether employee compensation or incentives are tied to claim outcomes.

The companies have been asked to respond by Oct. 16.

The investigation comes as Hawley has separately pressed insurers over complaints from Missouri storm victims.

In April, Hawley demanded information from State Farm after his office received complaints from Missourians affected by the May 2025 tornadoes in eastern Missouri. Hawley said policyholders reported delayed payments, low settlement offers, and disputes over temporary housing and debris removal.

He asked State Farm specifically how many Missouri storm claims had been closed without payment, why those claims were denied, and how long the company was taking to resolve and pay claims.

The insurance industry cautions that a claim closed without payment does not necessarily mean an insurer wrongly denied coverage.

Hawley says the increase nevertheless deserves scrutiny as consumers pay substantially more for coverage.

Homeowners insurance premiums increased about 70% nationwide between 2019 and 2025, according to figures cited by the senator.